Doing Your Own Medical Billing May Be More Costly than You Think
Many doctors assume that having their staff stay on top of and do their medical billing will save them money over time, but the opposite is actually true. There are many hidden medical billing costs that will cost you a lot of money over time.
Keeping up with coding changes, having claims denied, and resubmitting claims are just a few of the costs that can really add up. A few things that doctors may forget to budget for when considering their medical billing expenses are staff training, staff turnover, and how much billing errors really cost them. One amazing option to increase your office’s revenue is to turn this process over to a professional medical billing company. They are experts in what they do and you’ll see faster claims turnaround, a reduction in denials and rejections, and your billing costs will actually drop over time.
Staying on top of medical billing coding is very complex and there are little mistakes that are made that add up to a loss in revenue over time. One article estimates that doctors pay thousands of dollars a year in training for their medical billing. They also mentioned that switching over to the new ICD-10 codes will cost each office approximately $28,000. These are very significant amounts of money that will cause decreases in your revenue. Having an expert take over your billing can not only provide peace of mind that it’s being done right the first time; it can cut staff costs which also will help with your overall revenue.
Medical staff turnover can be a significant cost to your practice. It costs much more to hire new people than it does to keep the employees you already have on a long-term basis. Finding competent workers that understand medical billing can be difficult and even the best workers make mistakes. Unfortunately, many offices do see a high turnover rate partly because of the stress and confusion that the claims process has on them over time. A great solution to this problem is to turn this process over to a competent medical billing company. Staff turnover should decrease because their stress levels will be reduced, which will also affect your patients positively because they can build relationships with your consistent staff.
You probably already realize that you are going to have billing errors and try to account for them in your office’s budget. But most doctors greatly underestimate how much these costs actually are over time. A lot of doctor’s office workers don’t have training in medical billing. They are doing the best they can, but are unknowingly making mistakes that result in the denial of claims or claim underpayment. One recent study estimates that denial rates nationwide average 34 percent and that up to 40 percent of rejected or denied claims are never resubmitted. Imagine how much your revenue would increase if you could plug this leak in your practice. Having a knowledgeable medical billing company process your claims instead could be a very considerable money saver over time and you could see revenue increases almost immediately.
Medical billing is an essential part of a doctor’s practice. It’s how you get paid and then pay for your staff. Unfortunately, many doctors underestimate how much these costs add up in their practice. Training new office staff, high staff turnover, and little billing errors add up to large numbers over time. Having a billing expert take over your medical billing will increase your revenues, and it will decrease you and your staffs’ stress levels, giving you more peace of mind about your finances.