​​​While outsourcing medical billing is not a new concept, it might be a tricky decision to do so. This is because medical billing and coding go hand-in-hand, and unless your billing service provider is expert at identifying the correct codes, it can result in the bills coming out incorrectly, thereby resulting in large-scale losses. On the other hand, when done correctly, outsourcing can be a pain-free process giving you ample amount of time to concentrate on your core business strategies. Some of the key reasons to outsource medical billing include:

1. Increased Control:  It is a common misconception that if you outsource your medical billing services that you can lose control over your business processes. In many cases people feel that they have gained better control over their medical billing processes.  Also they control the money involved due to a trained and dedicated outsourced billing staff. This increased control directly ties in with your operational benefits, which stand to benefit from outsourcing.

2. Increased Revenues:  Outsourcing the medical billing, companies can save a lot of time and money in terms of salaries, office infrastructure, purchasing, upgrading, and maintaining billing software. With the reduction in overhead costs, timely submission of claims and increased reimbursements will result in increased revenues for the firm as well.

3. Changing Regulations:  The rules and regulations of the medical billing world are constantly changing. Keeping up with all the changes can be time consuming and cumbersome for any firm. By outsourcing your medical billing requirements, the changes in rules and regulations will be managed by the outsourcing partner, as they would make it a point to stay up-to-date with the latest changes. This frees up time for you to focus on other operational areas.

4. Reduced Labor Costs:  An average company spends about 30-40% of their collections on the medical billing process. By outsourcing these medical billing tasks they can save a lot of unnecessary costs. The need for hiring a dedicated medical billing team is avoided by outsourcing, as well as the money spent on training them and keeping them up-to-date with the latest regulations.

5. More Time for Patients:  When the medical billing processes are outsourced to a third-party, health practitioners have more time to concentrate on the patients rather than spending time on their billing processes. It makes good business sense to invest your business time into your core competencies like quality patient care and outsource ancillary business functions to service providers.


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SMS is established and independently owned. SMS has been privately owned and operated for over 20 years. Unlike large billing companies that answer to shareholders, we answer only to our clients.