In the last few years, we all have observed that the medical billing outsourcing industry has grown drastically. Most healthcare organizations prefer to hire professional medical billing companies so they can implement their medical billing and management solutions.
According to Grand View Research, the global medical billing and coding industry generated $9.3 billion in 2019. In fact, they also stated that it is expected to grow at a stronger CAGR of 12.3% over the forecast period.
Obviously, the more healthcare providers are going to trust medical billing and coding companies the more they are going to grow in the future.
Now coming back to your question that what is the purpose of medical billing and coding companies.
- These are the third-party companies that offer medical billing outsourcing services.
- So when healthcare organizations make a contract with the medical billing agencies then they take control over the healthcare revenue cycle management system of their business.
- In this way, they take the responsibility to collect every bit of data from healthcare providers in order to prepare and submit medical insurance claims on their behalf.
- Professional medical billing companies always offer HIPAA compliant solutions so there is no chance of information leakage.
- Also, they are legally accountable for their services.
- Besides medical billing and coding services, most well-established medical billing companies offer healthcare IT solutions such as; medical billing software, LIS system, automatic practice management systems, EHR and EMR.
- These medical billing companies charge their fees for providing medical billing and coding services in the following ways;
- Some medical billing companies charge a fixed percentage of revenue they collect on your behalf. The average percentage of revenue collected by medical and coding companies ranges between 9 to 14%. Although, this percentage is highly dependent on the size of your healthcare business.
- The other way, a billing agency can charge its fees is to pay per claim. So if a healthcare provider has made a contract with a medical billing company then they would charge a fixed amount (i.e. industry average $4 to $6 per claim).
- However, some medical billing collection agencies charge fees per hour. It also depends upon the size of the healthcare organization that helps medical billing companies to determine that how much they would charge them.
Even if all of us aren’t doctors, physicians, or anybody from the medical professional but we all were, are, or maybe will become a patient and so our family members.
Being suffering from a medical condition, everybody wants to get treated by the doctor immediately. So waiting for physicians so they can get rid of their phone calls and administrative responsibilities is always not a good sight.
So it is also somehow a source of satisfaction for patients that healthcare staff should outsource their healthcare revenue collection system to a professional medical billing company. So they can divert their complete attention to provide quality patient care services to myself or my family members and friends.
With automated medical billing solutions, doctors would not need to take the stress to prepare medical claims and following up on debtors to fill their accounts with some dollars. All their concern should be the health of their patients. While a medical billing company would be handling all the financial and administrative responsibilities on their behalf. For specialty billing and coding services, feel free to Contact Us today!