10 Reasons to Outsource Medical Billing Company

by | Nov 30, 2020

The job of the medical billing company is an integral part of receiving quality medical treatment. These companies are responsible for billing and coding the healthcare providers. It is a very important task to ensure that people are billed properly and the medical codes applied are appropriate. A slight mistake can result in insurance frauds and a lot of reimbursement issues, as people’s lives depend on it.

If you are a small firm with limited staff, you can probably handle billing yourself but if it is a proper corporation or professional mid-sized company, billing and coding can become very demanding and challenging for you to handle, unless you hire a professional skilled individual to take care of billing.

Medical billing at one time use to be an in-house task but given the challenges and demand, it has now become an industry on its own. And this is why a lot of healthcare providers keep them out of this billing hassle and outsource medical billing services.

In this article, we mention the benefits of outsourcing medical bills to a third-party company. This will help you understand that apart from saving time and money, what is the advantage of hiring a professional medical billing company.

10 Reasons for Outsourcing Medical Billing Company:

  1. Outsourcing the billing to a third party helps you stay more organized, focused, and in control. Once you have the final numbers ready for you, it is easier for you to make operational decisions. A lot of individuals think, that you might lose control, however, it’s the opposite, you gain more control.
  2. When you are dealing with billing and coding in-house, you also have to deal with security issues and protecting the companies’ data, etc. However, once this task is outsourced, the responsibility of protecting data also falls upon them. Therefore you are free from all the responsibility. The medical billing company is responsible if there is any breach of security and to protect the data from hackers etc. This is a big concern for healthcare providers and therefore it is better to let this responsibility be taken on by the third party as well. This will make you legally not held liable for any scams or security breaches.
  3. Companies tend to save a lot of money and time, thereby increasing their profits. You save from giving money to staff salaries, purchasing, software expenses, etc.
  4. No software investments are required and this, in turn, reduces your overhead cost as well.
  5. A company on average has to spend around 30 to 40 percent on bill collection from patients. This means you have to hire a proper team for medical bill collection. On top of that, you also have to train the team. However, once you outsource this task to a third party you are free from all this cost.
  6. Once you are free from having to deal with all bills and fee issues, you have more time to concentrate on treating the patients.
  7. When you outsource it to the medical billing companies, you receive monthly analytical reports from them which in turn helps you to understand the cost/benefit analyses and further strategist practices and labor costs, etc.
  8. Outsourcing the billing to trained professionals works best as you can expect quality work with no mistakes and full accountability falls on the third party.
  9. Billing companies and healthcare providers at the end of the day have the same interest, which is to collect billing from clients.
  10. One last benefit of outsourcing is to reduce employee turnover.


Healthcare providers are working in a highly sensitive profession which requires a lot of peace, calm, and patience. There is no room to deal with conflicts with the patients and their families. Everyone in a hospital or healthcare profession does not want to engage themselves with difficult things. The sole reason, healthcare providers do not like to deal with billing themselves is also because they do not have the heart to say no to patients who cannot pay the fees. It is better to let someone else deal with the dirty work.


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