Medical Billing And Coding Advantages And Disadvantages

The purpose of this paper is to discuss the importance on medical billing and coding. Medical practices have the option for staying in-house or the option of outsourcing to a professional billing service when it comes to Third Party Collections systems. Advantages and disadvantages will be discussed for proper understanding on what decision to make, especially for brand new medical practices. Especially, because a medical practice’s cash flow depends on their billing department, the more statements they can get out to patients and claims to insurance companies, the sooner they’ll be bringing money into the practice (MBAA, 2016).
There are many advantages to staying in-house when it comes to medical billing and disadvantages. An advantage of in house medical billing and coding is the ability of any provider to have major control of everything in their medical practice to include medical billing and coding. Another advantage is the provider can discuss if there are any issues that may arise with a bill, claim or any documentation that will be sent off for reimbursement. By doing so, any issues can be resolved in house at a faster pace and the provider’s staff will know firsthand if any other issues may arise and how to fix them in the future.
The disadvantages of staying in-house are …show more content…
Considering outsourcing can be an alternative to the intense man hours required in setting up in-house billing as well as dramatically reduce the burden associated with starting a new business, including staffing, training, space considerations, etc. (Patenaude, 2006). With consistency in billing, a medical billing company will regularly send claims to insurance companies; they are contractually obligated to follow up on all unpaid and denied claims (MBAA, 2016). When claims are denied, it is due to missing information or the document had inaccurate information, once fixed then claim can be