Practices in the current healthcare environments are pressured to balance their financial needs with quality patient care delivery. One of the biggest issues in this respect is that of the proper handling of the billing and collection mechanisms. The majority of practices continue to handle billing in-house, but as the industry shifts, outsourcing to a medical billing collection agency is the new standard.

In this article, we’re going to focus on the advantages of implementing a partnership with a medical billing collection agency and share some intriguing facts you might have never considered before.

What You Should Know About a Medical Billing Collection Agency?

The medical billing collection agency is a professional service provider that performs the revenue cycle management of any healthcare practice, including claiming from the insurance company as well as from the patient and handling of unpaid claims. Their main function is to ensure that this practice generates the most amount of income possible by making sure that each and every claim is submitted correctly and all necessary collections are aggressively pursued.

The Hidden Challenges In Medical Billing

Most extend their work assumptions to other care providers only to realize that the medical billing milieu has become very complex. Where insurance company policies, constantly changing coding systems, and newly enacted and strictly enforced compliance rules, practices, and guidelines, a fair amount of revenue is left on the table. Here are a few of the lesser-known challenges that a medical billing collection agency can help mitigate:

Ever-Changing Billing Codes & Regulations: Current procedural terminology has its codes amended annually by the American Medical Association, and compliance demands one’s attention. These updates are well understood by a specialized agency.

Payment Delays Due To Inaccurate Claims: Most patients’ insurance claims are denied due to mistakes such as minor errors made in coding systems or paperwork. Agencies minimize these mistakes by hiring professional coders and applying advanced applications to check the correctness of the claims.

Managing Multiple Payer Systems: In and out, working with Medicare and Medicaid, private insurance, or direct patient billing, managing each one is challenging enough to stress in-house teams.

Why Your Practice Needs an Effective Medical Billing Collection Agency

1. Maximized Revenue

Perhaps the most obvious advantage of hiring a medical billing collection agency is to make sure your practice gets paid on time and fairly. It is important for practices to note that practices that outsource their billing collections experience a revenue boost of between 15-25%. This is because of early and faster processing of claims, fewer denials, and more forceful efforts in the collection.

2. Improved Cash Flow

Lack of resources on billing teams results in delays on when to send a claim or when to follow up for payment on overdue invoices. An agency has dedicated and committed staff who work round the clock to ensure that there are fast collections to ensure your practice has a smooth cash flow.

3. Reduced Administrative Burden

Managing the billing process internally becomes very time-consuming because it will require several employees’ time while they could be attending to the patients. That way your staff has more time concentrating on other matters as the medical billing collection agency takes care of the intricate process.

4. Cutting-Edge Technology

The medical billing companies in my locality are incorporating the most advanced hardware and software to minimize billing hassles. It not only decreases human influences but also efficiently increases the flow of claim and payment collections. Larger groups of research doctors have the necessary funding for those technologies, while small to medium-sized practices do not have the proper funding to employ them.

5. HIPAA & Other Legal Requirements

Adherence is very important in medical billing especially if there are strict rules such as the one governing the disclosure of patient’s information as provided by HIPAA. These regulations are strictly followed by agencies thus protecting your practice from some very expensive mishaps.

Advantages Of The Firm You May Not Have Known

While the benefits mentioned above are well-known, there are additional advantages to working with a medical billing collection agency that often flies under the radar:

1. Access To Detailed Reporting

Agencies give more informative reports of your practice’s financial situation. Some of these reports may be KPIs such as claim approval, rejection causes, days in A/R, etc., to help in revenue cycle management in your practice.

2. Higher Collection Rates For Aged Receivables

One can imagine one more peculiarity – agencies are usually more effective while fulfilling old debt collection. Collection agencies employ special techniques to recover money although such claims are 90+ days old which internal staff may not handle efficiently.

3. Gaining Insights Into American Medical Response Billing

Most practices are not aware of AMR billing, which is a special form of billing most common in EMS. Outsourcing billing collection agencies with EMS knowledge and experience can handle these tedious procedural sections so that appropriate billing for ambulance services and other related emergency care is accomplished.

4. Marketing & Advertising Proficiency

Most agencies have expanded their services to go beyond simply billing assistance. As digital marketing emerges as a key trend in the United States, marketing and advertising agencies in New York offering billing services to healthcare practices also offer marketing strategies online. This blend is particularly advantageous in practices because it not only means that you can accept payments; you can also popularize your practice and increase your patient base.

5. Compatibility With Major Online Marketing Firms

It can also be beneficial for your practice to work for a medical billing collection agency that is connected to the largest online marketing companies out there because this can attract patients. In some agencies, billing services go hand in hand with patient tools, portals, and communication technology that aids in increasing patient satisfaction and timely payments.

Choosing The Right Medical Billing Collection Agency

When hiring a medical billing collection agency, there should be a careful selection of a company that should have the necessary experience and expertise. Look for agencies that offer:

Experts Knowledge Of Your Specialty: Rates charged also depend on the specializations hence the need to work with an agency that has experience in your area of specialization.

Transparency & Accountability: Make sure they give detailed and simple-to-understand reports, in which you will be well informed of the specific revenue sources.

Strong References & Reviews: Search for any customer feedback you can find and read case studies and reviews of the agency you intend to hire.

Excerpt

While billing in healthcare is still developing, contracting with an independent medical billing collection agency is not just a choice for practising anymore but a necessity for most of them to remain financially stable. Since these agencies employ advanced technology, skilled employees, and efficient procedures, agencies aid in increasing collection while allowing your staff to tend to patient care needs.

Here at Prospered Digital, we are ready to help healthcare practices change the way they approach billing systems and patients. Don’t let yourself be left behind, select a billing agency that listens to your concerns, enhances your practice’s revenue cycle, and comes out on top of the cutthroat healthcare industry.