Pros and Cons of Outsourcing Medical Billing

Pros and Cons of Outsourcing Medical Billing

When working in the medical field, there are a variety of pros and cons that come along with several different practices. Medical billing is one area that can be either kept in-house or outsourced. The method you choose is dependent upon the weight between the pros and cons. By learning more about the pros and cons of outsourcing medical billing, you can decide if this is the right choice for you, as your revenue flow is dependent upon an effective medical billing process.Ambulatory Surgery Center Billing


  • Lack of internal control: Some medical practices like to keep their medical billing in-house because it allows them to retain control of the company’s finances by using long-term trusted professionals to handle the billing aspect.
  • Loss on investment: When you outsource your medical billing, you lose out on any investments you’ve made on training of medical billing professionals. If there’s a lot of training in place, it may be more financially sound to keep billing in-house.
  • Far proximity: When issues arise with medical billing, you want to get those issues addressed as soon as possible. When you have billing in-house, you can speak to the team directly, right away. However, if you outsource, it can take a longer time to contact them and decipher a resolution.


  • Lower costs: One of the biggest reasons medical billing is outsourced is the savings. When you do the billing in-house, you have to pay the employee and provide them with benefits. This ends up costing potentially twice as much as outsourcing.
  • Good support: In-house billing members generally consist of 2-3 people. However, when you outsource this service, it’s generally a large group of people and a manager. The canstockphoto7430764medical billing and support issues can be solved much quicker, allowing the medical company to continue on with their daily routine.
  • Reduced liabilities: When you do your medical billing in house, you’re increasing liabilities within the company because general employees can file appeals that outsourced employees cannot. The percentage of suits filed against medical companies from employees are over half that of outsourced work.
  • Transparency: Medical billing must have a comprehensive report that covers the entire company’s income, pay-out, and revenue. When you outsource the billing, the outsourcing company completes an entire performance report each week, which isn’t always done by an in-house billing group.
  • Consistency: Those working within the billing department are often responsible for more than just the billing. When you have your in-house employees do the medical billing, they may be juggling several different tasks. However, those working as outsource billing professionals focus solely on the medical billing aspect, and their methods are consistent, allowing your company to know what to expect.

How do I Choose?

The method of billing you choose for your company is based solely on your individual preference. Companies that are looking to save money generally do better with outsourcing, feviconbecause as mentioned, there’s over twice the savings. However, for smaller companies looking to keep an eye on all aspects of the billing, choosing to keep the medical billing in-house is often the route to take. The best way to determine which method is best for you is to weigh the pros and the cos of outsourcing and determine which better meet your unique needs as a business.


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