Outsourced vs. In-House Billing

April 30, 2020

Questions to ask if you are a practice owner. Is your cash flow consistent? Are you getting paid the appropriate amount from payers? What is your collection rate? Would outsourcing your billing be better for your practice?

In-House vs. Outsourced Billing

It’s no surprise that many providers are choosing to outsource because of changing healthcare regulations and the growing risk management and compliance concerns associated with in-house billing staff. Both methods have their benefits and drawbacks, so it’s up to the provider to weigh the differences carefully – both in terms of cost and operational factors – to decide which approach makes sense.

Considerations - Whether you're a brand new organization or an established practice thinking about making the switch, the right answer involves analyzing and taking inventory of what truly determines the need for in-house or outsourced billing. Ask yourself the following:

  • Are you a new provider?
  • Do you have high staff turnover?
  • Are you hands on when it comes to financial operations?

Are you a new provider? New providers have a myriad of factors to consider when launching in hopes of acquiring patients and becoming successful. Outsourcing can relieve one of the most daunting aspects of starting new, leaving more time and effort to focus on patient care.

Do you have high staff turnover? When a skilled billing specialist leaves, many practices have no choice but to fill the vacant spot immediately or else revenue may be compromised. Each new billing staff hire requires education and training, on top of being responsible for keeping up to date with regulation changes. The learning curve for a new hire who is unfamiliar with a practice’s processes can be quite steep. It may take weeks or months for them to get into the swing of things, which leaves a lot of room for error. Unless your practice is large enough to require a billing department with employees of varying skills levels, there will almost always be enough turnover to create major issues. Also consider that you must cover work for staff members who are sick or taking vacation. Outsourcing your billing can alleviate the stress of turnover and save money in salaries.

Are you hands on when it comes to financial operations? Unlike an office environment, outsourced billing staff [may] not be readily available to your management team. Many providers are comfortable with this lack of control of medical claim operations, but many prefer to keep it closer to home. Outsourcing to a local billing company that employs smart, responsive associates can provide a deeper level of comfort because of their investment in the success of your practice.

MMSI is local and responsive, ready to help you achieve your revenue goals. Call today for a free analysis of your practice's financial health. 804-250-8088 or

(some content borrowed from blog from 2019).


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