Myths and facts about billing companies

Myth: You lose control of the income.

Fact: A reputable billing company would have their eye on your income more so than an employee since their income is directly tied to performance and results. Your participation in reviewing receivable reports and statistics are entirely up to you. Participation in providing accurate and complete billing information will enhance your income. A physician and billing service need to work together to make sure your needs are met.

Myth: All billing companies are the same.

Fact: Whereas the processes are similar and the goals and objectives are the same, you want to look for a company with experience, an excellent reputation, and a proven track record. Do not minimize the importance of customer service and availability both to yourself and your patients.

Myth: You have to have experience in my specialty.

Fact: An experienced billing company will have the resources to excel with any specialty. Your relationship is built on trust and confidence. Express your concerns at the onset and be proactive in your participation.

Myth: Billing companies have never met my expectations.

Fact: Realistic expectations are paramount to having a positive experience with outsourcing your billing. A billing company that can guarantee payment in 4 days is false. The only certainty a billing company can make is the turnaround time published by Medicare for clean and accurate electronic submissions. A billing company has no control over when an insurance company will pay the claim or how much will be paid. They can ensure that the claim is submitted timely and accurately, and they can monitor that the reimbursement is correct and appropriate. A billing company verifies and tracks that you are being paid the amount you have contracted for and will pursue any discrepancies. Finally, they can appeal a claim that is underpaid and will work hard to pursue maximum and timely reimbursement.

Employee issues: Difficult to find good help. Employees have no incentive for performance when paid hourly or salary.

Hire experts to reduce your headaches. Have access to more resources and the competency of a qualified and certified billing staff and certified coders.

High turnover.

Billing company assumes the responsibility to ensure accuracy, and without time delay. There is no hiring and no employment costs for recruiting, training, and sustaining employees on the practice.

Investment in software and hardware is costly - packages can range from $5,000 to $150,000, depending on the size and features required.

Billing companies are very particular in the billing software they use as a tool to handle their client base. In order to keep clients and maintain a good standing as a submitter, their choice of software has to be able to adapt to a changing electronic age and specification demands, as set forth by the insurance marketplace.

Findings and studies have shown that the average practice operates on 50-75 percent of "true income".

Billing services’ income is generated by their high yield of collections and results.

Multi-tasking. Often, in-house billing staff are pulled away from billing to assist with other shortages in staffing within an office that are unrelated to billing and collections activities.

Billing employees are only focused on billing and collection concerns. Employees are not distracted by the external forces present in a medical office.

Most errors occur at the front office concerning their ability to obtain accurate and complete patient demographic data entry.

A billing service is required to maintain a low error ratio in order to be an approved vendor.

Control over receivables.

Ongoing relationship with the billing company to obtain valid and reliable reports. Tracking trends in coding, changes to payer mixes, and aging of receivables on an ongoing basis enables a provider to have a "handle" on his/her practice. With the right billing company, this should be seamless as to where the office ends and the billing companies begin.

Costs.

Cost-effective alternative to reduce overhead costs and increase income. Win-Win situation.