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Problems With In-House Medical Billing

Problems With In-House Medical Billing
These are the most common problems that come up when companies try performing medical billing in-house.

Medical practices have pondered for many years whether it is better to do medical billing in-house or if it should be outsourced to a third party company. Many companies try to do their medical billing in-house, and many companies make this decision with the intention of saving money. Depending on the company, though, this does not always happen. In-house billing is not best for every practice. It depends on an array of factors, such as how old the business is and how large the labor market in the nearby area is. These are the most common problems that come up when companies try performing medical billing in-house.

It is More Expensive

This one may come as a surprise to you since it costs money to enlist the help of a third-party company. However, you still must pay your own employees to carry out billing services. This does not even include the cost of covering their benefits and buying the necessary technology to do their job. All these expenses may ultimately add up to more than what it would cost to hire a third-party medical billing company to handle everything for you.


Medical billing departments can serve as common places for embezzlement, as well as employee neglect. Such problems can include the ignoring of encounter forms, unappealed claim denials, and discarding of superbills. If the managers of these medical billing departments do not pay close attention to the events taking place in their own facilities, it can result in legal trouble.

Support Problems

Sometimes, in-house medical billing department’s do not have the support needed to thrive. If you have a billing department that only has a small number of staffers, it can compromise your cash flow and operations when any small problem occurs. If even one employee is out of the office for a day, perhaps because of illness or because they are going on vacation, efficiency in your business can be significantly impacted.

Employee Turnover

This ties into how expensive it can be to perform medical billing in-house. Since your company must pay employee salaries and get the necessary equipment, it can result in a loss of funds for your company. If a company loses enough funds, they may not be able to afford the costs of supporting a medical billing office. This can result in a higher employee turnover rate than if you hired a medical billing company to help your practice.

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This entry was posted on Thursday, July 23rd, 2020 at 10:00 am. Both comments and pings are currently closed.