Posts Tagged ‘Medical Billing’

In House or Outsourced Medical Billing – Which Model Is Right For Your Practice?

August 14th, 2022

The decision to change an existing medical billing model should not be taken lightly. Even the best case scenario involving a change to/from an in-house or outsourced medical billing model will involve some degree of short term cash flow disruption and we won’t even bring up the worse case scenario.

A health care provider’s first step is to determine whether or not his/her current medical billing model is achieving the desired financial result. Although financial analysis is beyond the scope of this discussion, the provider, accountant or other financial professional must be able to compare actual financial data to revenue and operating budgets. Assuming the integrity of the practice’s financial data is intact though accurate and timely data entry, the provider’s medical billing software should possess the capability of generating actionable management reports.

In the end, basic financial analysis will shed light on the strengths and weaknesses of the provider’s medical billing model. Some things to consider when evaluating a medical billing model: the inherent strengths and weaknesses of in house and outsourced medical billing models; the provider’s practice management experience & management style; the local labor pool; and medical billing related operating costs.

In House versus Outsourced Models

No medical billing model is without unique advantages and pitfalls. Consider the in house medical billing model. Approximately one third of independent health care practices utilizing an in house medical billing model experience cash flow issues ranging from periodic to persistent. The degree of action required by a provider to resolve his/her cash flow issues may range from a simple adjustment (adding staffing hours) to a complete overhaul (replacing staff or switching to an outsourced medical billing model).

The provider with an under performing in house medical billing model has a clear advantage over the provider with an under performing outsourced (also known as third party) medical billing model: proximity. An in house medical billing model is within walking distance. A provider has the opportunity to observe, assess and address – observe the process, assess the system’s strengths and weaknesses and address issues before they become full blown problems.

Consider the provider with an outsourced medical billing model. The relatively low entry barriers of the third party medical billing industry have led to a proliferation of medical billing services scattered throughout the United States. Chances are the provider’s medical billing service is located in another geographic area making first hand observations and assessments impossible.

The role of management reporting in a third party medical billing model is critical. A provider must regularly review charge entry, posting, write offs and account receivable balances to insure his/her cash flow is properly managed. A report as basic as 30, 60, 90 days in receivables will quickly give a provider a good idea of how well their medical billing and account receivable processes are being managed by a third party medical billing service.

A common mistake for many providers with an outsourced medical billing model is to gauge the effectiveness of the process in the very short term, i.e. week to week or month to month. Providers maintain a vague and informal sense of their cash flow position by keeping mental tabs on the checks they received this week versus the prior week or if they deposited as much money this month as last month. Unfortunately by the time a weakened cash flow gets the provider’s attention a much larger problem may be looming.

What causes a slow down in cash flow in the outsourced medical billing model? The most commonly cited scenario is lack of follow up on the part of the medical billing service. Why? Like any other business, medical billing companies are concerned first and foremost with their own cash flow.

A billing company generates 99.99% of their revenues on the front end of the billing process – the data entry process that generates claims. Billing companies that devote nearly all of their manpower to data entry will be understaffed on the back end of the billing process – the follow up on unpaid claims. Why? Every hour of data entry generates an additional one to two hours of claim follow up. Unfortunately for the provider, a billing company that ignores does not devote enough manpower to the diligent follow up of 30, 60, 90 days in receivables can mean the difference between a provider making a profit or suffering a loss during any given time.

Practice Management Experience & Management Style

Providers with practice management experience will be able to effectively manage or recognize and resolve a problem with his/her billing process before the cash flow crunch gets out of hand. On the other hand, providers with little to no practice management experience will more likely allow his/her cash flow to reach a critical stage before addressing or even recognizing a problem even exists.

Whether a provider with billing issues chooses to retain and fix their current model or implement an entirely different billing model will depend to a great extent on his/her management style – some providers cannot fathom having their billing staff out of sight or ear shot while other providers are completely comfortable with turning their billing process to a third party service.

Local Labor Pool

Whether a provider chooses an in house or outsourced billing model, a successful medical billing process is still contingent on the people involved in executing the medical billing process. On a side note, choosing office staff for an in house model is similar to choosing a third party billing company. Regardless of the model, a provider will want to interview the potential candidates or an account executive of the third party billing service for experience, motivation, team oriented personalities, highly developed communication skills, responsiveness, reliability, etc.

Providers with an in house model will have to rely on their human resource and management skills to attract, train and retain qualified candidates from the local labor pool. Providers with practices located in areas lacking qualified candidates or with no desire to get bogged down with human resource or management responsibilities will have no other choice but to choose an outsourced model

Top 5 Reasons to Work in Medical Billing and Coding

July 14th, 2022

Many health care professionals love working in medical billing and coding. The medical billing career field allows professionals the flexibility to work at home or in a medical facility. And training to become a medical billing professional can usually take less than a year.

The medical billing career field isn’t for everyone; it requires patience, flexibility, and analytical skills to use proper medical codes and bill insurance companies correctly. And it’s a career field for people who want to work in the medical field, but would prefer to work in the administrative side, rather than in the clinical side with patients.

If the medical billing career fields sounds interesting to you, then check out the top ten reasons to work in medical billing and coding.

1. HOT EMPLOYMENT GROWTH FOR MEDICAL BILLING INDUSTRY As you probably know, the medical billing and coding field continues to increase due to a growing need for medical procedures needed by our aging population. Every medical service requires medical billing professionals to relay procedure and cost information to health care insurance companies.

The U.S. Department of Labor recently reported that 8 out of 20 occupations projected to grow fastest are in the health care industry. They also projected that careers in the medical records and health information technician industry should increase 27% or more for all occupations through 2014.

The rise in employment opportunities is great news for trained medical billing professionals. It means that trained medical billing professionals should have job security and lot of job growth going forward.

2. SHORT-TERM TRAINING TO WORK IN MEDICAL BILLING AND CODING Another great reason you should consider starting a career in medical billing and coding is because of the short-term training.

Depending on the school you attend, you can graduate with a diploma in medical billing within a year, and you can get an Associate’s degree in medical insurance billing and coding within two years.

The short-term medical billing program often includes a study of:

Medical Insurance & Billing Issues
Medical Documentation and Evaluation
Government Health Care Programs
Electronic Data Interchange
Medical Insurance Claim Form (CMS-1500)
Ethical and Legal Responsibilities
The Associate’s degree medical billing programs often include a study of:
Medical Terminology
Medical Office Management
ICD-9 Coding
Advanced Medical Coding
Medical Billing and Coding Computer Applications
Due to the short-term training, many medical billing schools offer day and evening classes. Please be aware that not all schools offering medical insurance billing and coding will be right for you. Before choosing a school, make sure and read the article on choosing a high quality medical billing and coding school.
3. MEDICAL BILLING CAREERS CAN ALLOW YOU TO WORK AT HOME Many doctor’s offices and clinics don’t handle their own medical billing. They will often hire an outside medical billing agency or medical billing company. Some of these agencies and medical billing companies will hire professional medical billers who work at home to save on costs. And this is definitely an option if you decide on a career in medical billing.

It’s recommended that if you decide to work at home as a medical billing professional, or decide to work as a self-employed medical biller, that you work in an office as a medical biller for a short period of time so that you will gain the confidence and skills of a seasoned medical biller.

4. MEDICAL BILLERS HAVE MANY CAREER OPTIONS Professional medical billers have a solid knowledge of the administrative side of a medical office. Depending on their education and experience, medical billers can move into:

Medical Billing Management
Medical Transcription
Health Care Administration
Data Collection
Medical Office Management
Health Information Technician
And this is just a small list of possible career paths for seasoned medical billing professionals. These jobs will depend on your education, experience, and job market in your local area.
5. MEDICAL BILLERS CAN START THEIR OWN COMPANY Due to the high demand for medical billing professionals, some medical billers are deciding to leave their medical billing job to start their own medical billing company. This is only recommended for seasoned medical billing professionals who can find an assortment of medical offices that can become clients.