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In-House Vs. Outsourced: Medical Billing Services Comparison

It is crucial to decide whether you outsource or keep your top medical billing services in-house. In today’s economic climate, every dollar is important. Do-It-Yourself (DIY), which involves your in-house Medical Billing Services, is often a good option for medical practices. However, some providers may not realize that there are other options available to them. When deciding which model is best for you, consider your future and current needs as well as your ability to recruit, train and retain competent and dedicated staff.

Medical Billing Services

What is the difference between outsourcing and in-house medical billing?

Both versions of medical billing have the same goal: to prepare and submit bills and to ensure receivables get collected promptly. You can handle the critical tasks of medical billing when you manage it in-house. To keep track of your collections, you will need to hire a team or staff. Because billing is critical to cash flow, it is important to ensure that your team is efficient and accurate. 

Because everything, from the complexity of a changing regulatory environment to the accurate and efficient processing of bills, is done off-site, outsourcing removes many of these stressors for providers or practices.

These are the factors to consider when deciding where your bills will be processed.

What level of control do you want?

In-house staff may be an option for providers who wish to be close to their medical billing team. This is if they are able to afford the extra expenses and have the space. However, technology has reduced this gap. Providers who wanted to be able to see exactly where they stood in terms of cash flow or billing had to once have their own teams. With the advent of robust reporting tools, better connectivity, and dedicated teams, outsourcing can provide as much or more control as an in-house team.

How comfortable are you with risk?

Having an in-house team can expose you to major liabilities and risks. Even small crimes can be white-collar crimes. Negligent or unmotivated employees can have a significant impact on your bottom line. If you work in-house, your technology is at risk. You should have an IT team that is dedicated to running your business. You could experience delays in billing, which can impact your cash flow.

Your chosen brand should offer transparent and regular reporting when you outsource. It should be easy to see the status of your business and not have to worry that employees might make mistakes or do wrong. Transparency is built into the contract. You only need to press a button and instantly see the status and results of any claim or bill.

How big is your medical practice?

A practice that is small in size and can handle all the compliance and billing needs in-house will often reach a point when there are too many issues and bills to deal with.

If you choose to handle your medical billing in-house you are also committing to train your staff to process medical claims and to also handle appeals, denials, payment posting, reconciliation of patient accounts, and other compliance issues. This means that your business office must be staffed with competent employees in most cases. 

Your business will grow and you’ll need to hire more people to keep up. When you consider billing in-house, it is important to think about your office space, how many employees your practice can support, and your ability as a supervisor.

“Your total cost of revenue cycle staff salaries and hardware, software, training support staff, physical space, hardware, etc. Your net collection should not exceed 6.5%. Outsourcing allows you to grow your practice, whether you are an established practitioner or just starting out and is not limited by the size or number of patients. Outsourcing your medical billing can bring you a lot of flexibility and allow you to quickly adapt to rapid growth. You may not be able to find the right help at the right time if you rely solely on local talent.

Are You able to find the right people for the job?

Although an in-house team of professionals can do great work, it is not enough to meet your billing needs. You should have easy access to qualified candidates, both current employees and potential new hires. It is important to provide training that covers all aspects of the job and that employees are able to understand the appeals, complexities, and other facets of the job. It takes time and money to attract, train, and retain the right people. Before you decide on an in-house model, make sure you are confident.

A medical billing provider, on the other hand, will take care of these tasks for you. You won’t have to worry about replacing important employees or making a mess if someone suddenly leaves. The billing brand will also offer training. It won’t cost you anything to train your team or to wait for them to complete refresher courses or compliance programs.


Outsourcing billing is a good option if you don’t have the resources or are not in close proximity to your billing staff. Outsourcing offers many benefits, including reduced risk and cost, increased cash flow, and reporting capabilities. Most providers find it more efficient and productive. Get in touch if you have any questions or are unsure about how to improve your cash flow and decrease risk. We would be delighted to show you what a dedicated team of medical billing professionals can do for your business.

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