Billing pros and cons
Pros of outsourcing billing to a third party:
- Allows providers to focus on other aspects of the business.
- Effective contractors can keep DSO levels at 60 days or below.
- Relieves the headache of constantly hiring and training new billers.
- Cash outlay can be on a much smaller per-month basis rather than a lump sum payment for a new system.
Pros of keeping billing in-house with automation software:
- Keeps all pieces of the business together, integrates all functions.
- Providers can call up status of claims at any time.
- More economical in the long run.
Cons of outsourcing to a third party:
- Provider gives up control of a major business component.
- If for some reason the contractor quits, the provider may have to implement a billing system under pressure.
- Delays in getting claims status, hindering client inquiries.
Cons of keeping billing in-house with automation software:
- Investment in a new system requires capital, which can be difficult for new companies.
- Turnover among billing staff creates lengthy departmental voids.
- Keeping up with flurry of new regulations is a huge preoccupation.