In considering outsourcing, it is important to think long-term. The single, most common fact why most Physicians eventually decide to outsource their billing is difficulty in managing the human resource cycle. Human resource management problems arise from employee turnover and organic business growth.
Many medical practices go through high turnover periods, while others find loyal people who dedicate many years to working for the same office. The human resource management cycle can be very difficult for a Physician to maintain. Once a biller resigns from the practice, the Physician is left with no other option and is usually forced to hire someone who has very little experience. Ask yourself this question, when would you be the most worried; when your receptionist quits or when your biller leaves? Do you really have the time to find someone who is experienced and reliable and is able to deliver the quality and attention your billing deserves?
Growth is a normal part of any business. As a practice grows, the workload grows resulting in increased revenues. It becomes important to hire new people to meet the new workload demands. If a Physician has kept his/her billing in-house and, when it comes time to hire another biller, the Physician is increasing his/her fixed cost substantially, and all at one time. Not only is finding the right person for the job difficult, but hiring an extra person can be a heavy cost-burden.
With a billing service, the human resource management problems are eliminated on the part of the Physician. Voltech goes through periods of normal employee turnover, but we are able to absorb that attrition as we have numerous employees cross-trained and experienced in all phases of billing within our organization. When we work with a client, we work as a group; i.e. we do not give one employee all of one client’s billing. In this way, we can easily manage the normal attrition that occurs in companies and medical practices today. In addition, as you grow your practice, your outsourcing cost as a percent of revenue remains fixed to your revenue growth (we only charge a percentage of your total collections).
When you outsource, you save money and resources in many areas:
When you outsource to a billing service, the billing service is typically collecting a percent of whatever is collected; therefore, the incentive and the headache to collect falls on the billing service. In addition, you can demand accountability from a billing service as compared to an employee.
The misconception is that by outsourcing to a billing service, the Physician loses control of his/her billing. However, we maintain that outsourcing actually gives you full control of your billing, since the ease at which you can switch between billing companies is much simpler than switching between employees.