I have a general question that I am slightly confused about. Lets say the MD decides to outsource his billing to a billing service because they understand the billing process much better than he does and he doesnt want to incurr the expense of a biller and offering her insurance. This is a win win situation for the doctor. However, lets say this MD had 2 billers that he was paying $40,000 a year to and he is now saving $80,000 a year. Now lets also say this MD make $500,000/year. He just saved himself alot of money by eliminating his billing staff...
What confuses me.. is how does a medical biling company make any type of profit, whether they bill by percentage, flat fee or per claim.. this billing company has to hire billers at $40,000/year and pay payroll taxes and the profit of the billing company isnt even close to $500,000. so the billing company is incurring expenses that the doctor is eliminating and the doctor is making so much more money.. How is the billing company suppose to make a profit?.. I hope this doesnt sound like a stupid question.