How Outsource Medical Billing Can Save Your Practice Time And Money?

Is your practice experiencing a heavy denied claims rate, extensive paperwork that never ends,
and a slow payment cycle?

Rest assured, you are not alone. Most practices are already fighting this hustle but can’t find an
escape. Deploying in-house medical billing apparently sounds like a good decision, as
everything feels within your own control, but in actuality, you are inviting trouble that will hold
you back by preventing you from focusing on your core. Most healthcare providers lose as
much as 30% of revenue in billing inefficiencies.

But what if some of that lost revenue can be retrieved by streamlining billing operations?
Solution might lie in outsourcing medical billing services. By partnering with the best medical
billing experts, you’ll reduce errors, speed up claims, improve cash flow, and focus on what
matters: patient care.

Many top-notch hospitals are already using outsource billing services to cut costs and maximize
revenue. Now you might be thinking how does it work? Is it the right choice for your practice?
Let’s discuss the pros, and cons of outsource medical billing services and how you can choose
the best medical billing service to keep your practice financial cycle running smoothly

What is the Outsource Medical Billing Model?

Outsource medical billing is a model where specialized third party RCM companies handle
billing of the practices and hospitals. Outsourced models took away the burden of in-house
billing by facilitating medical providers, saving them so that much more time could be devoted to
patients. The method is pretty much effective in order to reduce the rate of claim errors like
claim bundling,coding errors,missing information while processing claims and speeding up
revenue cycle management.

The medical billing outsourcing market analysis report exhibits that the revenue expectation
from this industry is US$19,184.1 million in 2024. The projected CAGR for the next ten years is
expected to be 16.6%. The industry value of medical billing outsourcing by the end of the
projected period is expected to be around US$88,879.4 million.

How It Works

Outsourcing medical billing model consists of six simple processes.

1. Patient Visit And Data Collection
2. Medical Coding
3. Claim Submission
4. Payment Processing
5. Denial management
6. AR Recovery and Reporting

Let’s see detailed step-by-step approach that follows a structured cycle:

Patient Visit and Data Collection:

All the requisite information from the patient during the patient’s visit is gathered, such as
insurance, medical history, etc.

Medical Coding:

After the completion of the patient visit, the services translated into standardized required codes
by the insurance companies are done by the medical coders immediately.

Claim Submission:

The outsource billing team then presents these coded claims to the insurance companies for
reimbursement.

Payment Processing:

Once claims are approved, the payment is received by the healthcare practice or hospital.

Denial Management:

If claims are denied or rejected, the billing team promptlcorrects errors and resubmits them,
reducing the risk of revenue loss.

AR Recovery & Reporting:

The outsourced billing company provides regular financial reports, giving the insights into your
practice cash flow, revenue, and areas for improvement. Moreover they provide AR Backlog
Recovery services too and ensure aggressive follow ups in order to speed up the recovery
process.

In-House Medical Billing Software Vs. Outsourced Billing
Services? Which One Is The Right Choice?

It is a very difficult decision for any provider to decide whether they should choose in-house or
outsource billing services. While both options have pros and cons, if you are a practitioner you
must be doing extensive research inorder to make a better decision. Here, we have gathered
some factors to help you out so that you can make well informed decision for your practice
health.

Factors	In-House Billing	Outsource Medical Billing
Cost	High upfront costs (software, staff salaries, training)	Lower costs (pay only for services used)
Expertise	Limited to the in-house team’s knowledge	Access to experts specialized in medical billing
Efficiency	Can be slower due to other administrative tasks	Faster processing with dedicated billing teams
Billing Errors	Higher risk of errors due to staff workload and lack of experience	Lower error rates due to specialized knowledge
Compliance	Must keep up with constantly changing regulations	Outsource medical billing companies ensure compliance with the latest standards
Flexibility	Limited flexibility when workloads increase	Scalable services that adjust to your practice’s needs
Denial Management	More challenging to keep up with rejected claims	Outsourced teams handle denial management quickly and efficiently
Focus	Shifts focus from patient care to billing and administrative work	Frees up your staff to focus on patient care
Cash Flow	Often slower, with delays in claim processing	Improved cash flow with faster claims and reduced denials

Choosing outsourced Medical Billing Services allows your practice to benefit from expert
knowledge, faster claim processing, and fewer errors. Outsourcing gives you a cheap solution
that builds upon compliance, reduces administrative burdens, and helps improve your overall
cash flow. With the best outsource medical billing companies, you can scale services to fit your
needs. In the long run, medical billing outsourcing is more efficient, flexible, and nonstressful for
managing your practice’s revenue cycle so that you can focus on attending to patient care

Reasons to Outsource Medical Billing for Healthcare
Success

Outsourcing medical billing services has proved to be a panacea for most healthcare providers.
Why? They save a little time, cut costs, and facilitate some cash inflows. Now, let’s dig into why
outsourcing these services will help your practice take off.

1. Cost Effective

The overhead costs of in-house billing staff, software, and training are very high and saved by
outsourcing

• Reduces 30-40% of the administrative cost
• No manpower is required to work for the billing services
• Unnecessary investment in high-grade software upgrades

2. Consistent Cash Flow

Outsourced billing companies assign dedicated teams for your practice or hospital inorder to
enable quick claims processing and ensure that there is cash inflow periodically

• It takes nearly 50% less time to process claims
• Delayed payment results are decreased
• More cash inflow during each period helps in proper long-term planning

3. Expertise and Specialization

Professional outsource medical billing companies hire telent that bring extensive industry
knowledge and utilize it for your revenue

• Certified team that follows coding standards
• Teams stay compliment with regularion maximizing first pass claim probability

4. Focus on Core Responsibility

Outsourcing lets your staff focus more on patients and less on paperwork.

• Less time spent on billing issues
• More time for patient care and satisfaction
• Improved patient experience

5. Leveraging Technology

Outsource companies use cutting-edge technology to enable billing.

• Most current billing software available
• Claim status track record available immediately
• Effortless integration with your healthcare systems (EHRs & EMRs)

6. Reduced Billing Errors

Billing operations are handled by experts and, thus reduce the chances of high-value billing
errors.

• 25% more accurate claim chances than an in-house billing
• Minimal chances of denied claims

7. Compliance Assurance

It is not easy to remain compliant with healthcare rules, but with outsourcing, that becomes
something they take care of.

• Up-to-date on recent changes in healthcare rules.
• Avoid expensive penalties in case of non-compliance
• Compliance with HIPAA rules

8. Scalability

As your practice grows, outsourced billing keeps pace aligned

• Scale up or down depending on patient volume demand
• Pay only for what you need
• Easier to manage fluctuations in workloads

9. Enhanced Data Security

Outsourcing companies prioritize secure systems to protect patient data.

• Stronger cybersecurity measures
• HIPAA-compliant software
• Reduced risk of data breaches

10. Advanced Reporting and Analytics

Get detailed insights into your financial health with advanced reporting tools.

• Regular performance reports
• Track claims, payments, and denials easily
• Identify areas for financial improvement

11. Faster Claim Processing

Outsourcing speeds up the entire billing cycle, from coding to payment.

• Claims processed 30% faster
• Reduced payment delays
• Shorter reimbursement cycles

12. Better Denial Management

Dedicated yet experienced billing teams handle denials quickly and efficiently.

• Assign dedicated denial team
• Faster correction and resubmission of claims
• Aggressive follow-up

13. Reduced Administrative Burden

Outsourcing removes the need for your staff to juggle with billing tasks.

• Frees up time for essential duties
• Less stress for your administration team
• Minimize extensive paperwork

14. Consistent Revenue Cycle Management

Outsourced billing services provide stable and consistent management of your revenue cycle.

• Fewer disruptions in cash flow
• Improved long-term financial health
• Regular tracking and management of claims

15. Flexibility in Services

Outsourcing laboratory billing services allows you to choose what services you need and adjust as
needed.

• Customize services based on practice size and needs
• Pay only for the services you pick

16. Resource Recruitment and Management

No need to hire or manage extra staff when you outsource billing.

• Avoid recruitment costs
• No need to manage or train billing staff
• Controlled cost

Well, outsourcing medical billing services could be the best choice for healthcare professionals.
Top-rated medical billing companies in USA, like Cure Cloud MD are helping 500+ providers
with exceptional billing services they offer flexibility in terms of contract, use advanced
technology to help improve revenue cycle management, and provide dedicated teams for your
practice.This will give you ample time to focus on what you do best and give excellent patient
care while specialists handle the intricate and lengthy billing process.

Case Studies or Examples

1. Mayo Clinic

The Mayo Clinic is among the world’s renowned healthcare systems in the United States. The
high volumes of claims, as documented, resulted in late reclaims for the Mayo and inefficient
billing practices

They have outsourced their billing for their medical services to minimize the administrative
burden and improve cash flows. [ref: mcforms, mayoclinichealthsystem]

2. Cleveland Clinic

Cleveland Clinic remains to be one of the best-run hospitals in the country. However, it has been
facing massive billing errors and claims denial which bring a disturbing trend in the revenue
cycle of the hospital.

The clinic later decided to outsource its billing operations to a company specializing in dedicated
medical billing, which will help the clinic eradicate billing errors and manage its claims
effectively. [ref: huronconsultinggroup]

3. University of Pittsburgh Medical Center (UPMC)

One of the largest health care providers in the U.S. had to devise an effective solution for UPMC
in order to meet the conflicting issues of ever-changing healthcare regulations that demanded
increasing compliance levels as well as reducing operational costs.

UPMC outsourced their medical billing with a corporation that had experience in compliance so
that they were to fewer chances of getting fined and committing mistakes in their billing
processes. [ref:upmc]

4. Northwell Health

A large health system with over 20 hospitals, Northwell Health, faced issues such as an
increasing patient and claim inflow. In the present scenario, they desperately required scalable
billing solution support to automate as well as manage this increasing volume.

By outsourcing their billing, Northwell Health gained the flexibility and scalability needed to
handle growing demands, all while maintaining efficient revenue cycle management. [ref:
northwell]

Why choose Cure Coud MD?

Choose Cure Cloud MD for your outsource medical billing services. We have more than 500
satisfied clients with a proven track record of effectiveness. Cure Cloud MD boasts transparent
pricing and doesn’t have any hidden fees, and it works with flexible contracts tailored to fit your
requirements, so you don’t have to pay in advance first, you see results. Cure Cloud MD has
been an extended business partner of many trusted clients in the USA to better your practice’s
revenue cycle management.

Conclusion

To wrap up, medical billing outsourcing services are going to be a boon for your practice. It
helps save costs, increases cash inflow, and eliminates the headaches associated with
managing complex billing in-house. You will be able to spend more time looking after patients
with the understanding that you are going to have an increase in revenues with fewer errors and
payment collections.

If you are ready to save time and money, an outsourcing option with Cure Cloud MD, the
renowned medical billing provider will best align your needs. They offer customized contracts
with no up-front fees, as well as transparent pricing and helping you streamline your invoicing
processes.