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Why Outsourcing Medical Coding and Billing Benefits Your Practice
Outsourcing to a medical coding and billing company offers plentiful advantages to a medical practice. It ensures increased accuracy and reduces errors, leading to more efficient financial operations. Demand will increase by 168% over the next eight years as more and more doctors outsource billing: More and more doctors and medical offices are opting to outsource their medical invoicing. According to a recently published report from Grand View Research, Inc., demand is expected to generate rapid growth in the outsourcing market for medical billing, from $6.3 billion in 2015 to $8.2 billion in 2018 with an estimated growth to $19.7 billion in 2026.
This new information is an echo of a similar study conducted in 2014, which showed that 90% of independent doctors’ offices and small doctors also planned to outsource their invoicing.
Reasons to increase demand:
The entire healthcare sector has changed considerably in recent years. Since the introduction of cheap health care legislation until the introduction of ICD-10, it has become difficult for physicians to keep abreast of all new regulations, in particular billing and coding.
Limited internal experience:
Encoding and invoicing, as well as Revenue Cycle Management (RCM), have become increasingly complex and require more experience to maximize the return on investment and cash flow.
Outdated software:
Billing software has been specially developed to meet the latest industrial requirements. To guarantee and maintain billing efficiency, updating software can cost thousands to tens of thousands of dollars. Therefore, unconventional technology and tools provided by these companies further streamline operations, resulting in advanced reporting and informed business decisions.
Focus on patient care:
Changes brought on by MACRA (The Medicare Access and CHIP Reauthorization Act of 2015) as well as the switch to value-based care puts pressure on doctors to refocus quality measures, to prevent fines that can lead to lower insurance reimbursements. When billing is outsourced, doctors can focus on patient care without giving unnecessary attention to checking their medical billing.
Lower overhead costs, higher income:
Internal medical bills usually have fixed costs for medical practices. Costs related to IT staff and expenses can be significant costs for an independent company and must be paid regardless of the amount of income you have entered. External billing can eliminate some of these costs, and convert them into variable costs based on the number of processed requests and reimbursements you have entered.
Related Reading: Understanding Medical Billing Services: A Comprehensive Guide