Start a Medical Billing Service – Tips for Finding a Service That Is Right for You
What services does a medical billing service offer? Medical billing services process and file medical insurance claims with the appropriate authorities. They also manage delinquent accounts and follow up on them—billing services train staff in the various medical coding techniques and applicable codes.
What percentage of claims are made by coding crews? The most significant portion of claims comes from non-medical billing services that perform mainly collections activities. Examples are collections, premium collections, income collections, legal collections, appeals, contract collections, and errors and omissions. Medical coding and billing services concentrate on groups because they involve direct contact with the patients.
Why should a medical billing service specialize? Experts say that a service specializing in a given area is more likely to get better results. However, many cons exist for businesses specializing in several niches. Primarily, they have less experience in resolving situations related to billing, such as interpreting bills, have limited opportunities for learning new coding techniques and billing procedures, and face higher expenses in operating and maintaining a large in-house staff.
What’s the ratio of revenue to expenses for a percentage-based fee versus an hourly-based price? Experts recommend that revenue should outnumber costs by at least three to one. For percentage-based medical billing services, the ratio is usually about five to one. This means that the percentage-based fee is usually a lower revenue item. For example, if the maximum estimate for a claim is $100, the percentage-based cost might be close to one-half of that amount–close enough to be a good fit for your needs.
What are common errors that are found in medical billing service claims? Medical coding experts say that incorrectly classified claims can result in the denial of benefits or payment. Some of the most common errors include denials due to misclassifying disease diagnoses, incorrect codes for previously diagnosed conditions, incomplete treatment for severe or life-threatening diseases, and mistakes made on death certificates. Experts say a billing service should use accurate coding practices to avoid denials of benefits and payment. It also is best to avoid delays in processing claims, as this can cause patient embarrassment and negatively impact their emotional well-being.
What do consumers feel about how well a medical billing service manages their health? Consumer advocacy groups advise coders to use quality practices and to train employees accordingly. According to these groups, rules with a good reputation are more likely to correctly code claims, use accurate terminologies, provide proper outcomes and provide timely refunds. In addition, the best Coders Practice guidelines recommend that all coders involved in service be thoroughly trained, certified and pass comprehensive examinations.
How do you ensure your patients are treated with care and dignity? A significant part of any medical billing service is the ability to ensure that your customers are given timely attention and that they receive the treatments they need. The practice must have appropriate levels of staff and equipment to perform its functions properly. The service should implement policies to ensure that its employees respect patients and that they handle all matters with professionalism. The best practices for handling claims involve proper documentation of all patient information to prevent delays in processing claims; providing accurate, fair, unbiased information to patients; providing assistance to customers in the preparation of their claims; handling payment; providing referrals to patients; and keeping track of all patient information.
Do you plan to start a medical billing service but want to start with a smaller firm that provides top-notch service? Smaller medical billing service companies tend to have lower overhead and can offer lower rates than larger firms. In addition, with a smaller business, you can save money on labour by having fewer employees. You also have the option of starting with just a few clients. Or, if you’re thinking about going global, you may be able to get a discount from a more prominent firm that offers global coverage. Even if you’re only operating in a small local area, you can probably get enough clients that don’t require a national search.
