With numerous insurance carrier policy changes, commencement of new medical reforms, and never-ending technical and software advancements, medical billing and coding has become a extraordinary task for US medical billing companies. It is to ease of this excess cases that the concept of outsourcing came into existence.
While many medical billing companies have already outsourced their medical coding services to offshore vendors, some still envision about the idea. This article will elaborate on the major differences between in-house and outsourced medical billing. Therefore, US billing companies will be able to make their decision, weighing their options.
Costs:
Doing a detailed cost analysis is essential to decide between in-house and outsourced medical billing and coding.
- In-house Medical Billing: There is a lot of costs involved when you perform medical billing in-house. The first one is labor cost that includes salary, tax and benefits per month. Proper hardware and software are a necessity, so add up those costs. Training the employees is imminent since the new medical reformation and involves a good sum. In addition, there are claim processing costs and technology & software upgradation costs.
- Outsourcing: The cost of outsourcing medical coding services is way less than the sum of all the aforementioned costs. Apart from the partnering cost, there is no other cost involved such as labor, hardware & software and claim processing fee.
Accuracy:
With the transition of ICD-10 from ICD-9 coding set, there has been an increase in medical billing and coding errors leading to huge AR pile-up. Therefore, medical billing companies should take into consideration the accuracy level of both billing options.
- In-House: Intense training is required to handle the ICD-10 code set. However, most medical billing companies provide basic training to their staff and urge them to handle medical coding services, which is not going to help. Hence, the accuracy level in in-house billing is not so good.
- Outsourcing: Many experienced offshore medical coding companies have highly-skilled professionals who are adept in handling the ICD-10 coding set. This implies that there are less errors in coding and claim denials. Their accuracy level is very good.
Compliancy:
- In-house: Keeping up with the ever-changing compliancy policies and regulations is very tough in the present scenario. Acquiring the necessary certifications is crucial to carry out medical billing and coding functions properly.
- Outsourcing: Most offshore vendors stay compliant with the current trends, possessing the right certifications. Therefore, partnering with an offshore medical billing company is a good choice.
Improved Cash Flow:
- In-house: As there are so many claim denials in the in-house medical billing and coding, the cash flow is reduced. The huge AR pile-up also affects the revenue cycle management.
- Outsourcing: They have all the necessary gadgets and man power to carry out medical coding services exceptionally well, meaning less claim denials and increased cash flow.
Turn-around Time:
- In-house: Business continuity is not certain in in-house medical billing and coding as there may be employee absenteeism or unexpected delays leading to low productivity. It affects the turn-around time badly.
- Outsourcing: With an outsourcing partner, there is no worry about the turn-around time as they deliver the output in the agreed date, complying with the contract. If you consider outsourcing to an Indian vendor, then the TAT will be even faster due to the placement of their convenient time zone (12 hours ahead).
About e-care India:
After differentiating the in-house and outsourced medical billing and coding, it is understood that the latter has more advantages. If you are looking for a reputed, experienced offshore partner, then consider E-care India. This ISO certified and HIPAA compliant company ensures timely delivery with SLA (Service Level Agreement). E-care will continue to support the outsourcing company even during emergency situations with its Disaster Recovery Center. To know more about e-care and its services, log on to www.ecareindia.com.