In the course of the last 15 or 20 years, hospital billing and collection policies and practices towards under-insured and uninsured patients have gone under increased investigation, which has resulted in the creation of Affordable Care Act. The duty of each hospital is providing standard quality care to the patients and meet their needs. Every hospital has a different issue, but the most common problem that every hospital faces is regarding patient billing and coding. Many hospitals are still working with the systems they inherited from the 1940s, and they lack resources, this is why their relations with the patients suffer. To overcome these issues, medical billing services were created.
The revenue lost in the healthcare department in the US due to self-pay billing issues is as high as 25% to 35%. A survey conducted by the Ponemon institute between 580 healthcare professionals, the physicians, and hospitals in America are still in digital dark ages when it comes to utilizing the latest internet services and mobile devices to deliver patient care. As a result, an estimated amount of $8.2 billion is absorbed by the US medical industry annually. Another issue about privacy and security concerns of the data arises because of usage of social media. Medical Facilities in the US leave around $120 billion on the table each year due to poor billing procedures. The two significant factors of loss generation are billing errors and failure to keep up with the billing rules and regulations.
An estimated 80% of medical bills consist of errors. Insurance agencies are extremely strict when it comes to correct medical coding and billing practices, and even minor mistakes can cause an insurance agency to dismiss the claim. Medical billing outsourcing is the best option to manage all these errors and get your applications approved by the insurance agencies.
Failure to Keep Up with Billing & Regulations
The rules and regulations in the medical billing industry continuously keep on changing, and it is challenging for medical facilities to understand and keep up with these rules. Due to this fact revenue generation is affected.
Eight Ways Outsourcing Can Help
Outsourcing medical billing services remain the best option for hospitals and medical facilities to regenerate lost revenue. The expense of outsourcing may feel a little extra at first, but in the long run, it usually adds up being more beneficial for you and your practice. The following are the reasons why medical billing services prove to be helpful.
- Most of the billing organizations charge on percent-basis, means they only charge a percent of the revenue that they are generating for your company. This fact makes the billing services work harder for faster collections and submissions of claims.
- Hiring staff only for billing purposes can get costly. Keeping in mind the staff’s benefits, salary, training, taxes, and compensation for a turnover. Outsourcing a medical billing service removes all these headaches.
- Billing companies consist of professionals who are more experienced and have been working in the field for a very long time. The chance of errors in the hands of these professionals is very limited.
- Billing companies comply with the latest laws of healthcare like Health Care Reforms Bill and HIPAA.
- By working in collaboration with medical billing services hospitals can concentrate on their job which is to improve patient care.
- The patients don’t have time, and they want to cut through the hurdles of billings preventing them from securing insurance. It’s essential for the businesses to have the knowledge and experience regarding Medicaid eligibility verification.
- Patients who don’t have insurance can benefit enormously from the assistance and alternatives that the medical billing service provides them.
- Medical billing services help in creating increased net revenue and offers predictable cash flows without sacrificing customer satisfaction, money and precious time.