Author Topic: In-House Billing vs Outsourcing Expenses  (Read 1821 times)

TxJFP

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In-House Billing vs Outsourcing Expenses
« on: March 08, 2011, 10:32:21 PM »
So I have all that is needed for my upcoming billing business from discussions with my lawyer, contract, compliance plan to state regulations, name formation, insurance and county policies. I have heard from at least 6 local doctors that they believe outsourcing is too expensive. Just to give everyone a glimpse where I'm trying to get the ball rolling at is are small towns (the county is as big a Rhode Island). A lot of these doctors have had bad services by bigger billing companies so they feel in-house billing is the best way. As for the software I am looking to get into is "Kareo" a web-based program. Why is it that most offices feel they can manage everything in-house? Also, what would be a good marketing strategy to persuade them into going outsource?

Michele

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Re: In-House Billing vs Outsourcing Expenses
« Reply #1 on: March 09, 2011, 08:03:21 AM »
When I have a provider that tells me that it's too expensive to outsource I tell him he can't afford not to!  Actually I usually tell them that their receivables will increase more than the cost of my service so it actually won't cost him anything.  I then go into the expenses of having an employee, taxes, wc/disability, vacation, sick time, lunches, space etc.  I also remind of the savings on postage, forms, software, updates, clearinghouse fees, etc.  Then I start explaining how much they lose by having someone either not fully qualified, or someone without enough time to effectively handle the billing.  I explain that 42% of denied claims go unpaid because most offices do not handle denials, do not file appeals, do not read electronic reports, etc.  I ask how much they have out over 30 days, how much they bill out vs how much they are collecting.  I also ask how the patient billing works.  I explain that I'm an expert, I get claims paid, and paid timely.  I ask them what areas of their billing are problem areas then I explain why it wouldn't be a problem for me.  I try to find one issue they are having, explain how I would handle it and then explain how that alone would cover my fee.  I also explain that if they have an employee in house that they don't want to let go that they would be working with me to ensure that their receivables were being handled and that they would then have more time to concentrate on the problems and other things in the office that need doing.  I also ask what they do if the billing person leaves unexpectadly (<- spelling??)  what will they do, how will they find someone and who will train them.  AND if they are willing to put their livelihood in the hands of a new person that they really don't know what their background is.

That's pretty much what I tell 'em!
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TxJFP

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Re: In-House Billing vs Outsourcing Expenses
« Reply #2 on: March 09, 2011, 09:18:37 AM »
Wow! Well hopefully I can come up with some good techniques like you have there.  ;D
Is there a website I could refer to that states these percentages when comparing to in-house and outsourcing? I have come by some, but they are on other billing services websites and I don't know if
I was to use that as print-out if it would be seen as "copyright"... I feel if I could show proof of something, it may possibly make them lean more my way.

Thx Michele

PMRNC

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Re: In-House Billing vs Outsourcing Expenses
« Reply #3 on: March 09, 2011, 10:02:12 AM »
Providers will say that because that's the wonderful world of business and bidding. I've had doctors say that to me and to me that means "I'm shopping around for the best price" Fine.  But common SENSE here with ONE fact blows their theory to hell.

Employees =  PAY TAXES
Subcontract = 1099
3rd party outsourced solutions -  TAX DEDUCTIBLE. 

I rest my case.
Linda Walker
Practice Managers Resource & Networking Community
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TxJFP

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Re: In-House Billing vs Outsourcing Expenses
« Reply #4 on: March 09, 2011, 10:34:02 AM »
Thx for the info. That is simple and too the point. I'll have to use or come up with something similar. It sure drew me in. ;)


PMRNC

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Re: In-House Billing vs Outsourcing Expenses
« Reply #5 on: March 09, 2011, 10:41:46 AM »
Here's a good article for providers weighing the option of outsourcing, look at the point made as "con's" and use the "opposite" to attract.

http://www.physicianspractice.com/outsourcing/content/article/1462168/1590085

Good article, only thing is (and I've written them with no response) they mention nothing about the states in which it is illegal for providers to enter into fee-spliting arrangements. Since their article mentioned the average way outsourced billing companies charge, I felt they should have mentioned those states and the ramifications for physicians.. other than that it's a great article.

Linda Walker
Practice Managers Resource & Networking Community
One Stop Resources, Education and Networking for Medical Billers
www.billerswebsite.com

pattil88

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Re: In-House Billing vs Outsourcing Expenses
« Reply #6 on: March 09, 2011, 02:33:40 PM »
Here's another article that provides the pros and cons of outsourcing - little outdated (May/2003) but still gives some pointers to think about.

http://www.modernmedicine.com/modernmedicine/Medical+Practice+Management%3a+Practice+Pointers/Practice-Pointers-Outsource-billing-Heres-how/ArticleStandard/Article/detail/111391