According to American Medical Association (AMA), healthcare providers spend an average of 15 hours per week on medical billing and coding services. To overcome this diffusion, 83% of them found the solution to this problem in outsourcing their medical coding and billing needs.
The global medical billing and coding outsourcing market is expected to grow, with a compound annual growth rate (CAGR) of 11.8% from 2021 to 2028. In this blog post, we’ll explore costs associated with these services, some of the best practices, and top destinations for outsourcing medical coding and billing services.
The Costs of Outsourcing Medical Billing and Medical Coding Services
The cost of outsourcing medical billing and coding services ranges from 4% to 10% of the annual revenue. It widely depends on various factors, including the practice’s size and complexity, the outsourcing partner’s location, and the specific services required.
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Consider the total cost of ownership:
When evaluating outsourcing partners, it’s essential to consider the total cost of ownership, not just the cost of the services themselves but additional costs such as setup fees, training costs, and ongoing support and maintenance.
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Look for providers that offer customized solutions:
Healthcare providers may find that providers that offer customized solutions can help them save money by only paying for the services they need rather than paying for a one-size-fits-all solution.
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Consider the long-term benefits:
While outsourcing medical coding and billing services may require an initial investment, healthcare providers may find that the long-term benefits, such as improved efficiency and accuracy, can result in significant cost savings over time.
Best Practices for Outsourcing Medical Billing and Coding Services
When outsourcing medical coding and billing services, there are several best practices that healthcare providers should keep in mind to ensure a successful partnership:
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Define your goals:
Before outsourcing medical billing and coding services, it’s crucial to identify key performance indicators (KPIs) and metrics for success and outline any specific requirements or needs that your practice may have.
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Choose the right partner:
When selecting an outsourcing partner for medical coding and billing services, and it’s essential to look for providers with a proven track record of success who can provide references and case studies to demonstrate their capabilities.
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Establish clear communication channels:
Communication is key when outsourcing medical coding and billing services. Establish clear communication channels with your outsourcing partner and set expectations on information that will be shared.
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Monitor performance and provide feedback:
Regularly monitor the performance of your outsourcing partner and provide feedback to help them improve their services. This can include reviewing reports and analytics, conducting regular check-ins, and providing constructive feedback.
Top Destinations for Outsourcing Medical Coding and Billing Services:
When it comes to outsourcing medical billing and coding services, there are several top destinations that healthcare providers may consider:
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- India is the preferred destination for healthcare outsourcing for companies in the United States, with 58% of respondents choosing India as their top destination, as per a survey by the National Association of Software and Services Companies (NASSCOM).
India has taken steps to improve its business environment and attract foreign investment, making it easier for healthcare providers to outsource their medical coding and billing services. According to a report by the US Department of Commerce, India has a favorable business environment, with a stable political and economic climate and a government that is supportive of foreign investment. - The Philippines is the 2nd most favorite destination for outsourcing medical coding and billing services after India. Well, credit goes to its large English-speaking population and favorable business environment. Healthcare providers may find that outsourcing to the Philippines offers a good balance of quality and affordability since the average hourly rate for medical coding and billing services in the Philippines is around US$7 to US$10,
- China is emerging as a leading destination for medical coding and billing outsourcing, with a compound annual growth rate (CAGR) of 14.9% from 2020 to 2027. China has over 9 million healthcare professionals, including medical coders and billers. Outsourcing to China can provide healthcare providers access to a talented pool of professionals with specialized skills and expertise.
- Bulgaria is a highly educated workforce with a 98% of literacy rate, making it a favorable business environment. According to a report by Outsourcing Insight, the cost of medical coding and billing services in Bulgaria ranges from US$15 to US$30 per hour, making it an attractive option for healthcare providers.
- India is the preferred destination for healthcare outsourcing for companies in the United States, with 58% of respondents choosing India as their top destination, as per a survey by the National Association of Software and Services Companies (NASSCOM).
Outsourcing medical billing and coding services can be an effective way for healthcare providers to reduce costs and improve efficiency.
Contact MedBillingExperts today; we offer various customized options for outsourcing medical coding and billing services to help healthcare providers achieve their goals and improve operations.
