When it comes to managing a medical practice, few things are as important---or as stressful---as billing. After years of handling our billing in-house, I decided to explore outsourcing to a professional medical billing service. The result? Eye-opening.
In this article, I'll share my honest experience comparing in-house billing with outsourced medical billing services, and what I learned along the way. If you're a physician, office manager, or healthcare administrator wondering which route is best, this breakdown could help guide your decision.
The In-House Billing Experience
Running billing internally felt natural at first. We had a small team of dedicated staff who knew our patients, understood the system, and worked closely with the front desk. But over time, cracks began to show.
Pros of In-House Billing:
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Direct Oversight: I had full control and visibility over the billing process.
Immediate Communication: Having the billing team onsite meant real-time answers to questions and concerns.
Familiarity with Patients: Our staff knew our regulars and could offer a personal touch when discussing bills.
Cons of In-House Billing:
Staff Turnover: Trained billers leaving meant we had to constantly retrain replacements---slowing down everything.
Coding Errors: Mistakes and missed codes led to denied claims and delayed reimbursements.
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Hidden Costs: Salaries, software licenses, compliance training, and errors added up fast.
Scaling Issues: As our patient volume increased, the billing team struggled to keep up.
Despite our best efforts, our accounts receivable began to pile up, and claim rejections became a recurring issue.
Switching to Outsourced Billing
