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To Outsource Or Not To Outsource: Examining The Pros And Cons Of Medical Billing Companies

By Landen Davidson

One of the most important aspects of managing a successful practice is medical billing and coding. Years ago, patients paid doctors directly for their visits, but now everything goes through insurance companies or government healthcare programs, making it significantly more complicated. Typically, medical professionals in private practice hire certified medical billers to process the claims within the office. A new alternative to this process has been recently introduced to the healthcare industry. It is now possible to outsource medical billing and coding to professional medical billing companies.

The sole function of a medical billing company is to process and submit claims. These companies are staffed with medical billers who are certified and who undergo thorough training. Most medical billing companies also provide continuing education for their employees, which enables them to stay abreast of any changes in the industry. Unlike medical practices, whose main focus is taking care of their patients, a medical billing company focuses only on claim processing, which allows them to have the resources to hire and train a staff of experts. Online medical billing companies can process insurance and Medicare claims from varying specializations and states.

When practitioners first learn about outsource medical billing, they think that it is almost too good to be true. There are certainly some very appealing aspects to outsource medical billing companies. Firstly, medical billing companies either charge a flat fee per claim or a percentage fee of accepted claims. Either way, it works out that medical practices get their claims processed for a lot less money. When using a medical billing company, practitioners get the added advantage of saving thousands of dollars in salaries, benefits, taxes, supplies, etc. And because the medical billing is no longer done within the office, healthcare professionals are then able to focus more energy on their patients. The final benefit of using a medical billing company is that claims are usually processed faster and more accurately. This means a reduction in EOB’s and less waiting for payments.

Outsourcing insurance claim processing, although there are many benefits, is not necessarily for everyone. Many medical professionals, for instance, like the fact that their billing and coding is done in house, because this enables them to closely monitor the process. When you use a medical billing company, you are not dealing with the claim processing on a daily basis, a fact that is a pro for some, and a con for others. Also, practices that aren’t modernized or tech savvy (those that are still mailing in their claims) may be resistant to this method. Other practitioners worry that their claims will get mixed up with another practices, or that the company won’t know specific regulations regarding their state and specialization. And finally, medical billing companies have contracts, usually for one year, which the weary practitioner will be hesitant to sign.

There are both pros and cons to using a medical billing company to outsource your insurance claims. Whether or not outsourcing your billing and coding is the right choice for you and your practice is really a matter of personal preference. If your practice runs smoothly the way it is, and you feel no desire to change anything, then perhaps there is no need to change. But for many medical professionals, medical billing and coding is a huge hassle that presents difficulties that affect every aspect of the practice. With a little research, you can find a professional medical billing company that can expedite your reimbursements and revolutionize your claim processing.

Medical billing services help streamline medical practices and improve efficiency. If you are tired of the hassle of medical billing and coding, consider using a professional medical billing company.

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Article Citation
MLA Style Citation:
Davidson, Landen "To Outsource Or Not To Outsource: Examining The Pros And Cons Of Medical Billing Companies." To Outsource Or Not To Outsource: Examining The Pros And Cons Of Medical Billing Companies. 26 Aug. 2010. 7 Aug 2014 <>.

APA Style Citation:
Davidson, L (2010, August 26). To Outsource Or Not To Outsource: Examining The Pros And Cons Of Medical Billing Companies. Retrieved August 7, 2014, from

Chicago Style Citation:
Davidson, Landen "To Outsource Or Not To Outsource: Examining The Pros And Cons Of Medical Billing Companies"

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