Written by Jeremy Carter
When deciding whether to keep billing in-house or outsource it, it’s important to consider all the costs involved. While handling billing in-house might seem cheaper because you control staffing and payroll, there are hidden costs that can affect your practice’s finances.
Direct costs include:
- staff wages,
- taxes, benefits,
- software,
- clearinghouse fees,
- and the statement fee or postage
These can add up quickly, especially if your team requires ongoing training and updates on payer regulations. In addition, there are indirect costs. In-house billing might lead to the following:
- more rejections and denials,
- lower net collections and cash flow,
- and higher patient bad debt
So, your practice needs to stay updated with changing insurance rules. But this can be a daunting task while taking care of your patients. You may miss reimbursement opportunities, which can lead to financial losses.
The best strategy to overcome these challenges is to outsource your physical therapy medical billing services to a reliable billing company. Thinking about how to choose the right one? Don’t worry, this blog will help you with that!
The Benefits of Outsourced Physical Therapy Medical Billing Services
Outsourcing your physical therapy medical billing services can make a huge difference for your practice, both in terms of your finances and the overall efficiency of your operations. Here’s a breakdown of why it might be worth considering:
1. Aligned Incentives
When you outsource billing, the company handling it will generate more revenue for your practice because they successfully process claims. This means they are highly trained to tackle even the trickiest claims with care.
For example, if you are dealing with a complicated insurance claim, a billing company with a stake in the outcome will put in the extra effort to ensure it gets processed correctly. In-house staff might not have the same incentive, which could result in less thorough handling of complex cases.
2. Expertise and Specialization
Billing companies specializing in physical therapy coding. They stay updated on the latest changes, which means they can accurately code your claims and submit them on time. For example, they will be aware of new codes or changes in reimbursement rates that you would otherwise overlook if you handled billing in-house.
3. Increased Revenue and Cash Flow
Outsourcing physical therapy medical billing services can actually help boost your revenue. Billing specialists use tried-and-true methods to maximize your reimbursements and minimize denials. Many practices see a 5-10% increase in net collections when they switch to outsourced billing.
For example, a practice that regularly struggles with denied claims might see those numbers drop significantly, leading to a more stable cash flow.
4. Scalability and Flexibility
As your practice grows, so does your billing workload. An outsourced billing company can easily scale up to handle more claims as your practice expands. If you open a new location or add more therapists, the billing company can adapt without the need for you to hire and train additional staff.
5. Improved Efficiency and Productivity
Offloading billing tasks to a specialized company allows your team to focus on what they do best: taking care of patients. This shift can lead to higher patient satisfaction and, potentially, more referrals. For example, your front desk staff can spend more time addressing patient needs rather than getting bogged down with billing issues.
6. Compliance and Risk Mitigation
Billing companies are experts at keeping up with the latest regulations and avoiding common risks. They help ensure that your claims are compliant. It reduces the risk of denials, penalties, and audits. This means you can rest easier knowing that your billing practices are in line with current standards.
Choosing the Right Billing Company
When selecting a physical therapy billing company, consider the following:
1. Experience and Reputation
Look for a company with a solid track record in physical therapy billing. Check out their experience, client reviews, and their success rate in securing reimbursements. A billing company with a strong reputation is more likely to deliver reliable results.
2. Technology and Software
Make sure the billing company uses advanced software that integrates well with your existing systems. You don’t want any errors in the payment process, so it’s worth testing how smoothly everything works together before committing.
3. Services Offered
Beyond basic billing, see if the company offers extra services like insurance verification, claim scrubbing, denial management, and detailed reporting. These additional services can be incredibly valuable in efficiently managing your practice’s billing.
4. Communication and Support
Choose a company that communicates clearly and responds quickly to your needs. They should keep you updated regularly and handle any patient questions about their bills professionally.
5. Pricing and Return on Investment (ROI)
Understand how the billing company structures its fees and whether they align with your financial goals. A good billing company should be transparent about pricing and show you how their services will positively impact your bottom line. Many practices find that outsourcing can lead to a 95%–99% net collection rate and improve overall collections by 20-25% compared to average in-house billing.
Questions to Consider When Choosing a Physical Therapy Billing Company
Before hiring a physician billing company, you should consider the following questions:
- Is this physical therapy billing company HIPAA-compliant?
- Do their employees and services have affiliations with the Healthcare Business Management Association (HBMA)?
- Are they well-versed in the latest industry standards and regulations?
- How much do they charge to provide these physical therapy medical billing services?
- Who will be responsible for using the correct modifiers?
- Have they worked before with practices similar to your size and scope?
- Do they allow smooth integration of software with your existing one?
- Are the majority of their services electronic?
The Bottom Line
Outsourcing physical therapy billing services to a reputable billing company in the USA has numerous advantages. Your physical therapy practice will experience a revenue boost, improved efficiency, cost savings, and compliance assurance. Assess the needs of your practice, partner with a billing company, and track KPIs to collect the maximum amount for the services rendered.
Remember, the best strategy is to move forward with a proactive approach so that you can save your practice from any penalties.
Author Bio: Jeremy Carter is a healthcare researcher and writer with over five years of experience. He writes about medical billing, revenue cycle management, and healthcare trends.
Please also review AIHCP’s Health Care Management Certification programs and see if it meets your academic and professional goals. These programs are online and independent study and open to qualified professionals seeking a four year certification