Medical billing is a crucial component of laboratory revenue cycle and it needs to be intact for increased profitability. To keep the financial side of labs efficient, laboratory medical billing should be handled professionally. Similarly, labs can hire billing teams and train their staff to get equipped with the latest industry knowledge. However, the process of hiring and training brings additional costs and lab owners need to spend time with new teams. Another solution to optimize the billing and coding process is outsourcing business processes to experts. Hiring third-party billing companies allow lab owners, pathologists, and staff to spend time on core business tasks. Here are some reasons why labs should outsource billing instead of hiring in-house teams.
Lab Industry Knowledge and Billing Expertise
Handing over the billing and coding process to experts helps labs to improve their financial growth. The billing companies which offer lab RCM services possess the latest industry knowledge. As the healthcare industry evolves, there are many changes in the billing and coding process which labs witness. So, outsourcing opens the doors of revenue maximization for laboratories of all types and sizes. Both clinical and reference labs can increase productivity and profitability with outsourced lab billing services. As a result, it minimizes the stress of losing money and having adverse effects on the RCM cycle.
Working with a lab billing company allows pathologists and lab owners to interact with professionals having extensive billing expertise. Also, professional billers have experience of dealing with the regulatory environment and what impacts it is likely to cause. So, labs can stay away from the fear of revenue leakages as the third-party billers have extensive experience. Staying complied with the latest healthcare industry regulations lead to accurate claim submissions and timely payments.
Faster Payments and Reduced Costs
Keeping the process of laboratory medical billing seamless leads to faster payments from insurance companies. Also, it helps labs to increase revenue opportunities, make workflows efficient, and uplift the revenue cycle process. In addition, maintaining a team of in-house billers and coders require additional costs spent on training, software installation, and employee benefits. However, outsourcing the management of the lab revenue cycle to professionals reduces costs and elevates revenue potential. Further, there is no capital investment required when labs hire third-party medical billing companies.
Outsourcing billing and collections to professional billers help to get rid of the stress of hiring teams. Also, it keeps the lab owners away from spending time on finding replacements when someone leaves. Likewise, labs do not need to spend on the office infrastructure. As a result, it saves costs and the staff can focus on weak areas and improve the overall performance of the labs by spending time on core tasks. Both reduction in costs and increased revenue collectively optimizes the revenue cycle process.
Less Billing and Coding Errors
Obviously, the professionals at a lab billing company do not make errors while submitting claims to payers. In addition, billers and coders know exactly about the lab RCM and ensure clean claim submissions for optimum reimbursements. In-house billing teams can make billing and coding errors which are harmful for the revenue cycle. Further, outsourcing billing to third-party companies ensures better results in terms of revenue growth. As a result, labs can gain financial control and make better business decisions.
It is easier to meet the financial goals with outsourced billing services and ensure maximum payments for claims. In addition, laboratories can improve the bottom line with lesser errors in the claim submission process. Also, it reduces the accounts receivable and makes sure the bills are paid seamlessly. Moreover, labs can increase operational efficiency and do not miss out on potential revenue. Therefore, outsourcing enables labs to achieve better financial outcomes as compared to in-house billing.
Compliance With Industry Rules
There are certain regulations which stakeholders of the healthcare industry need to follow. Similarly, the protection of patient data is essential according to HIPAA rules. In addition, there are other compliance requirements because the healthcare industry keeps on evolving. So, it is essential to stay on top of every change whether it is an industry regulation or payer guidelines. Failing to comply with the rules may lead to penalties and revenue losses. Moreover, the coding specialists are well versed with the ICD-10 codes and have complete idea where to use modifiers. As a result, labs can develop a mechanism of efficient billing process.
The laboratory medical billing experts stay updated with the latest updates of the healthcare industry. Similarly, the billing professionals stay updated with the payer guidelines to ensure maximum reimbursements. Likewise, adhering to compliance requirements ensure clean coding, on-time payments, and enhanced revenue cycle. As a result, outsourcing billing and coding to experts make sure that laboratories keep the revenue cycle intact without hiring in-house teams. So, making the best decision according to the requirements helps labs streamline billing and operations.
I have a B.S in Human Services from Virginia Tech. I have worked in the medical billing and coding field for over 6 years. Currently, I am converting my passion into my words & writing content for publications regarding RCM.