Most medical practices, especially those with only a handful of practitioners, believe that keeping or controlling all facets of RCM (Revenue Cycle Management) in-house will give them more flexibility or understanding of their finances. However, most practitioners or healthcare providers did not enter the profession to become accountants, coders, or billers. The reality of medical billing services for small practices is that – these have fewer resources or personnel than larger healthcare group practices. Therefore, everyone in the smaller practices becomes involved just to get the job done.

Medical Billing services for small Practices

Employees of small-scale medical practices work as subject matter authorities on the billing and coding practices, which often pulls those (physicians) from their primary duties. Fortunately, there are comprehensive medical practice billing services protecting and even increasing revenue for smaller practices. Furthermore, the medical billing services for small practices also reduce operational costs and daily workloads. Thus, outsourcing the medical billing processes can be beneficial to the RCM for small practices.

Issues with In-house Medical Billing services for small Practices

Mistakes are, without a doubt, a common occurrence. Also, as it is with smaller practices, the front office staff performs multiple tasks. Here, the codes can get transposed, information is often forgotten, or even there are instances of a doctor’s signature being omitted.

What are the consequences of it all?

• Common errors which lead to claim denials and loss of revenue.
• The time that medical staff spends on billing takes away patient care time.
• Staying up-to-date with the complex regulations becomes a burden.

Due to all of these reasons, even the most expert medical billers and coders can make mistakes from time to time. While such errors are common, they can turn costly. However, by outsourcing financial operations, errors can be limited, protecting the revenue of a small practice.

Additionally, medical billing services for small practices encompass many billing, coding, and administrative tasks; submitting clean claims is just one of those. Furthermore, another essential aspect of RCM for small practices is handling the claim denials and denial appeals.

Some recent studies suggest that over 15% of all medical claim denials were due to coding mistakes, 15% for incomplete information, and close to 21% for correctable coverage information.

Advantages of Outsourcing Medical Billing Services for Small Practices

Medical Billing Services for small Practices have become integral for efficient revenue cycle management. Numerous companies specialize in aiding small businesses, offering a range of advantages that make outsourcing these services a practical choice.

Complete Transparency

Transparency is vital in RCM for small practices and also for healthcare providers. Engaging in a medical billing service ensures complete visibility into your financial health. Professionals provide comprehensive reports encompassing key metrics such as:

• Claims submitted
• Clean claim percentage
• Denial and rejection rates
• Account receivables
• Monthly reimbursements from patients and payers

This comprehensive overview enables practices to understand and address denials promptly, enhancing the overall efficiency of the billing process. Moreover, by entrusting these responsibilities to experts, practices can be confident that claims are processed on time, contributing to improved financial outcomes.

Boosting Practice Efficiency

Outsourcing medical billing services for small business allows smaller practices to alleviate the burden of administrative tasks. Additionally, a survey by the Commonwealth Fund revealed that nurses and medical assistants spend on average at least 20.6 hours per physician per week on administrative health plan-related tasks. Also, by offloading billing responsibilities, healthcare professionals can redirect their focus to patient care, enhancing overall practice efficiency and thus improving patient satisfaction levels.

Moreover, medical billing experts guide accurate documentation, specialty-wise billing, and coding guidelines. This organized approach reduces errors and minimizes test duplication, streamlining workflows for increased efficiency.

Reducing Practice Overheads

Reducing practice overhead is a significant advantage of medical billing services for small practices. Maintaining an in-house medical billing team involves considerable challenges, including hiring and retaining staff and managing fixed costs like payroll, health benefits, and training expenses.

Surprisingly, support staff in medical practices can account for approximately 37.16 percent of the total monthly cost. Furthermore, outsourcing to medical billing companies typically involves charges based on the total amount of insurance reimbursement collected. Lastly, this approach ensures coding compliance, minimizes rejections, and reduces rework, proving especially beneficial for smaller or mid-size practices unable to afford a full-time, in-house billing employee. Moreover, by entrusting medical billing and coding tasks to experts, practice owners can redirect their focus to patient care, unburdened by concerns about changes in healthcare plan coverage. Any savings in support staff and billing costs contribute directly to the practice’s bottom line. According to a report, physicians may allocate up to 14 percent of their gross revenue to ensure accurate and prompt payments for their services.

Payers Credentialing

Handling the credentialing and enrollment process with insurance carriers can be time-consuming for new practices or those adding new physicians. Medical billing service companies offer solutions to expedite this process, possessing expertise in payer-wise credentialing and contracting procedures. Moreover, efficient enrollment is followed by negotiation with payers for optimal rates. Negotiating with large insurance carriers can be overwhelming for smaller practices, making outsourcing to a medical billing services company a practical choice.

Third-party medical billing companies with years of experience excel in negotiating and securing the best rates for your practice.

Profitable Operations

Engaging a medical billing company significantly reduces costs and enhances operational efficiency. Outsourcing eliminates the need to invest in the latest billing equipment or pay high software fees. Practices with in-house billing departments typically allocate between 30 and 40 percent of their collections to meet billing department expenses. In contrast, using a medical billing service provider substantially lowers claims costs. Additionally, data security, a complex task, is diligently handled to meet HIPAA requirements as part of the comprehensive services provided by outsourced medical billing companies.

Convenient and Efficient & Billing Solutions

Choosing medical billing services for small practices proves an efficient and convenient solution. By having billing professionals manage the intricacies, healthcare providers can redirect their focus to delivering optimal patient care. Monthly reports and general practice management can receive more attention. Even when approvals and reviews are needed from medical accounting professionals, it usually demands minimal effort and time from the providers. The outcomes of these efforts are transparently presented through reporting, enabling an ongoing assessment of practice success.

Outsourcing medical accounting tasks to professionals becomes a hassle-free option. MedICD offers service packages that ensure seamless practice management. Remarkably, they charge only a small percentage of the collected money for their comprehensive services. Our expert team:

• Conducts fee schedule analyses to secure the highest reimbursement rates
• Furthermore, we verify claim correctness before submission
• Establishes efficient policies and procedures to reduce processing time
• Meticulously reviews refusals to address deficiencies
• Thorough audits of Explanation of Benefits (EOB) guarantee refund accuracy

Faster and Error-Free Outcomes

Opting for medical billing services for small practices ensures faster, continuous, and error-free outcomes compared to handling billing in-house. In-house processes might lead to inconsistent results and profitability, disrupting cash flows. Conversely, a medical billing company has a well-defined process that ensures consistency in delivering results. Capitalizing on its industry experience and unique knowledge base, it operates with real-time information, minimizing errors and ensuring continuous, simplified outcomes.

Choosing us for medical billing services aligns with the goal of maintaining consistent results, reducing errors, and ensuring a steady cash flow for small practices.

What MedICD Offers – Everything in One Place

We are your trusted billing partner for maximum reimbursement: certified experts and swift service.

1. Cost Savings

Our medical billing services for small practices bring substantial cost-saving benefits. The simplified billing process, reduced administrative overhead, and minimized billing errors contribute to significant financial efficiencies. By choosing our billing services for a varying list of specialties in healthcare, you are ensuring that your practice operates with optimal financial effectiveness, allowing resources to be directed where they are most needed.

2. Tailored Solutions

Outsourcing your billing needs saves costs and provides customized solutions tailored to your practice. This strategic move minimizes staffing, training, and technology expenses, allowing your practice to allocate resources wisely. We become an extension of your team, ensuring efficiency and cost-effectiveness in every aspect of medical billing.

3. Faster Payments

Experience quicker reimbursements with our timely claim submissions and proactive follow-ups. This accelerates cash flow, enhancing your practice’s financial stability. Moreover, our commitment to swift service ensures that you receive payments quickly, contributing to the overall success of your small practice.

4. Compliance Assurance

Our expert teams stay current with the ever-changing regulations, guaranteeing HIPAA and other compliance standards are consistently met. Secondly, you can trust us to manage the complexities of medical billing while following the highest compliance standards, providing you peace of mind.

5. Minimizing Denials

Our expert billers navigate the billing rules expertly, minimizing claim denials and maximizing reimbursements. Partner with us to significantly reduce the hassles of claim denials, ensuring a smoother and more profitable billing process.

6. Reporting and Analytics

Gain access to comprehensive reports and data analytics to make informed decisions that drive practice growth. Harness the power of data to guide your practice towards success and improvement. We empower your small practice with valuable insights for effective decision-making and sustained growth.

Final Word

Outsourcing medical billing services for small practices to third-party experts like MedICD is necessary for simplified revenue cycle management. Key benefits, including cost savings, customized solutions, faster payments, compliance assurance, reduced denials, and advanced analytics, highlight the vital role these services play. Healthcare practices must look for ways to offload administrative tasks’ burdens and focus more on their core care services. Third-party medical billing providers offer streamlined processes and services to enhance revenue, sustain success, and offer an error-free charge capture.