As a physical therapist, what does it mean to outsource your billing? Is it worth it to have another company handle your claims? It’s a big change, so what does the on-boarding process look like?

These are all excellent questions for you to consider. Even if you think you’re satisfied with your current billing circumstance, it may be worth re-evaluating. It’s always smart to periodically invest some time in auditing your processes and business vendors/partners. You never know if better solutions are out there!

Let’s talk outsourced billing. Of course, your first question is probably about cost. What does outsourced billing cost? We’ve found that it’s usually between 6% to 12% of claims collected each month. You’ll need to consider whether or not the monthly fees are worth it for you and your clinic.

Outsourced billing my be right for your clinic if you’re seeing a high turnover in front office/billing staff. You may need to calculate your total costs for the additional employee(s) plus the cost of the billing software and clearinghouse fees. One of our partners, Software Advice, created an extensive list of considerations and cost break downs that you may want to check out.

A big factor can be the total amount of claims collected. Is your staff (would your staff) really collect the maximum amount? It’s quite possible that more seasoned, dedicated billers could collect more for you and your clinic. You work hard for every dollar you earn. You want a billing company that does the same. Ask for specific examples of how they have caught small claim errors and tracked down every possible dime for their clients. As a business owner, you know that that sort of persistence and attention to details is priceless!

When deciding on an outsourced billing service, it’s also key to consider your visibility to your claims and the collections process. It is after all, YOUR money! With any outsourced partner, make sure to ask about transparency and whether or not they touch your revenue.

Speaking of transparency, are the billing professionals in the United States or offshore? Some outsourced billing companies literally outsource your business to offshore teams. If it’s important to you, make sure to ask the actual geographic location of the team managing your patients data and claims.

If you already use an EMR, does your billing service offer a seamless pass-through of data from the EMR to the billing company? If not, you may be paying for hours of inefficient data entry. Inquire about integrations between your documentation software and the billing software used by the outsourced billing company.  (If you don’t use documentation software, ahem, we should talk!)

As a physical therapist, your focus should be treating your patients and help them become healthy again. You shouldn’t have to also dedicate time to tracking down claims when you could be treating patients. Even if you hire someone to handle your billing in-house, the costs and hassle (your time spent managing that aspect of your business) may not be worth it. If you’re ready to prioritize or if you know you need the expertise, it may be time to consider outsourcing your billing.