Calculating and recording expenses is imperative for all businesses, irrespective of type and size. Businesses often find it difficult to decide whether to outsource their billing services or keep them in-house. While the former model using in-house coders and billers might be a great option, businesses need to consider their present and future needs, their capacity to find, manage and retain suitable staff, net income, etc., before deciding upon in-house vs outsourced billing services.
In-house billing services are adopted by businesses that wish to handle the crucial tasks of generating and submitting bills, ensuring the prompt collection of receivables and compliance with industry guidelines on their own. Businesses must invest in hiring at least one to two trained billers and coders to ensure swift and accurate collection and tracking of revenue.
Medical institutions such as clinics, hospitals, etc., opting for in-house billing services have properly trained staff, ensuring the setting of charges, collection of patient fees, management of accounts receivable, and other aspects of revenue cycle management.
Businesses can also outsource their billing services to credentialed billers and coders. Outsourced billing services enable businesses to avoid expensive start-up costs, stress related to delayed submissions, staffing, management, etc.
In medical institutions, some providers outsource their billing to a third party known as a medical billing service, which takes up a percentage of collections and/or a recurring monthly fee as payment for managing the institution’s revenue cycle.
Pros
Cons
Pros
Cons
Businesses must decide between in-house vs outsourced billing services for effective revenue cycle management. In-house billing allows direct control and confidentiality but can be costly. Outsourced billing services offer enhanced productivity and professional expertise but can lead to less control over billing functions. Pros and cons must be carefully weighed to make the best decision for the business.