Medical Billing Outsourcing vs. In-house billing

Aug. 30, 2009 - PRLog -- Outsourcing the medical billing function enables physicians to focus on the critical care of their patients. With ever-changing insurance rules and HIPAA regulations, healthcare reimbursement and processing medical claims are too complex to maintain in-house. By outsourcing the medical billing process, physicians are able to "wash their hands" of all administrative details involved in handling relations with insurance companies and government agencies. Medical professionals can then concentrate fully on what they went to school for and what makes them money: treating patients and practicing medicine ­­ because when medical billing falls behind, payment is being held-up.

While in-house billing provides the perception of control, it actually increases the risks of losing business-critical knowledge, raises concerns about data security, impedes accuracy in claims processing, and ultimately limits billing transparency.

Many healthcare providers have outsourced their medical billing as a tactical approach to have their medical billing completed professionally and efficiently. Outsourcing the reimbursement cycle to a company like Payment Automation Network, Inc. allows physicians to save time and money because every minute that a physician or employee spends on an activity that does not directly add value to the patient's well being, is a cost that can be saved.

When used as a long-term strategic management tool, physicians can reap many rewards from outsourcing the medical billing function.

Access Specialized Expertise and Resources
Payment Automation Network provides access to specialized medical billing tools, techniques, technologies, and knowledge that can only be maintained by a company that has focused its learning and business on providing top rate medical billing services.

Reduce and Control Operating Costs
The single most important tactical reason for outsourcing the medical billing function is to reduce and control operating costs. Achieving greater economies of scale and advantages based on specialization, is clearly and simply one of the most compelling tactical reasons for outsourcing.

Improve Cash Flow & Promptness of Billing
Eliminate cash flow interruptions that occur when in-house medical biller leaves or goes on vacation. Developing a steady cash flow will only enhance the practice's bottom line.

Free Resources for Other Purposes
Redirect the medical practice´s resources from non-core activities towards activities that have the greater return in providing medical services to patients. By outsourcing a non-core function such as medical billing, staff´s energy is free to focus on greater value-adding activities for the practice.

Share Risks
Government regulations (HIPAA), the marketplace, competition, financial conditions, and technologies all change extremely quickly. Keeping up with these changes, (technology and know-how) is an expensive and time-consuming endeavor. Outsourcing your medical billing to Payment Automation Network greatly reduces these risks because Payment Automation Network makes investments on the behalf of all clients.

Improve Core Business Focus
By devoting too much attention to areas that do not contribute to the bottom line, medical practices can dilute precious resources and decrease flexibility and agility. Outsourcing the billing function to Fast Track, physicians are able to concentrate on practicing medicine instead of the varied support functions required to run a successful practice.

Medical Billing Oursourcing vs. In-house Billing (cost comparison)

In-House

Base Pay: $14.50/hour
Yearly: $30,000.00
Medicare & Social Security: $2295.00
Retirement: $1040.00
Disability:$720.00
Health Care: $5220.00
Vacation/Sick: $3270.00
Annual Collections: $470,000.00
Annual Total  1 In-House Biller: $42,585.00  

Medical Billing By Payment Automation Network

Medical Billing at: 5% of collections
Annual Collections: $470,000.00
Total Annually: $23,500.00

** Savings: $19,085.00

*Does not include:
Software $500 per year
Paper/Envelopes/Stamps $1800 per year
Clearinghouse Fees $1500.00 per year
Reference Materials $350.00 per year  

Could Outsourcing your Electronic Medical Claims Filing make financial sense for you in your practice? Would you like a free detailed analysis for your office? Visit our website to setup a time to discuss your specific situation. We will be happy to run your numbers and give you a detailed cost savings analysis.

Call Toll Free (800) 813-3740 or visit us at  www.PaymentAutomation.net

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Payment Automation Network, Inc. provides cash flow services for medical providers and businesses nationwide. We specialize in helping all kinds of businesses increase their cash flow using next generation in technology. We are a Full-Service Billing and Receivable Collection company specializing in collecting your receivables faster and for less than it would cost on your own.