If you are a healthcare provider that allows patients with health insurance coverage to use that payment mode, then billing would definitely be one of the biggest backend challenges you would be facing. Here are the top five reasons why hiring a third-party patient billing service provider could be the best investment for you in 2024.
Access to expertise
The first logical reason why someone may want to opt for third-party patient billing services is access to the right billing experts. Medical billers, especially the ones that come with several years of experience, are hard to find and even harder to retain. They get poached quickly from one place to another and are always in demand. When you decide to hire an external billing company, you don’t have to worry about these problems.
Access to technology
Another very significant reason why you would want to opt for third-party patient billing services is access to technology. These billing providers ensure they have invested enough in top billing and coding technologies like AI and machine learning because they need the support to handle multiple clients at the same time. By working with these providers, you can ensure you get access to the top technology without investing in them, too.
The ability to scale up and down seamlessly
One of the biggest advantages of hiring a patient billing service provider is how seamlessly you can grow or cut back on your processes without a lot of thought involved. Let’s say, as a healthcare practice, you choose to expand to two more branches in the next three months. A heads-up to the service provider is enough to go through this quickly. You don’t have to take care of staffing or technology addition. Similarly, if you decide to cut back on the growth, then as long as you give the service provider enough time to prepare, you can let go of them.
Reduced administrative burden to the healthcare providers
Provider burnout is real, happening every day, and leading to costly errors in terms of patient treatment. As a business in the healthcare industry, it is your duty to take care of your providers well and ensure they have the mental and physical stamina to treat patients. By giving over patient billing services to a third-party provider, you ensure your medical practitioners don’t spend overtime going over administrative tasks.
Improved revenues
Yes. It may surprise you, but spending money on hiring third-party patient billing services will actually help increase your revenue rather than eat into your profits. How does this work? Let’s say you have a current denial rate of 20%. You bill an average of $500,000 a month. So, on average, you lose $100,000/month on denied claims.
Let’s say you pay a small third-party patient billing service provider a $20,000/month retainer fee for their services. The company is able to bring down your denials rate to 10%. So now, you lose only $50,000/month on denials. Even after adding the fee paid to the provider, you still pocket a profit of $30,000/month. So you see how you can increase your profits without doing anything extra by just taking expert help.
Comments