Did you know that the American Medical Association (AMA) has found that medical billing and coding services consume an average of 15 hours per week from healthcare providers? That’s significant time spent away from primary care services. The solution? An astounding 83% of healthcare providers have found that outsourcing these responsibilities is the key to reclaiming that lost time.
The outsourcing medical billing and coding market is anticipated to expand globally between 2021 and 2028, with a compound annual growth rate (CAGR) of 11.8%. This blog post will discuss the cost of outsourcing medical billing and coding, some best practices, and the best places to outsource medical billing and coding.
Source: Medical Billing Outsourcing Market Size, Report By 2032 (precedenceresearch.com)
Precision & Profitability Facts About Outsourcing Medical Billing
Outsourcing medical billing and coding services might cost between 4% and 10% of yearly income. The exact percentage depends on several variables, such as the practice’s size and complexity, the outsourcing partner’s location, and the particular services needed. The following features are compelling for healthcare providers to consider medical billing and coding outsourcing.
- Growth of the Outsourcing Market: The global medical billing outsourcing market was valued at approximately $15.15 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 11.8% from 2023 to 2030. This growth is driven by the increasing complexity of billing procedures and the need for compliance with changing regulations.
- Cost Efficiency: Recent studies have shown that healthcare providers can save up to 30-40% on operational costs by outsourcing medical billing and coding services. These savings come from reduced administrative overhead, minimized errors, and faster claim reimbursements.
- Improved Accuracy: Outsourcing medical billing services have been shown to improve billing accuracy by up to 99%, significantly reducing the number of denied claims and ensuring quicker reimbursement turnaround times.
- Customized Solutions: A survey conducted in 2023 found that 72% of healthcare providers preferred customized billing solutions over generic ones, citing better alignment with their operational needs, enhanced cost efficiency, and improved patient financial experiences.
Best Practices for Outsourcing Medical Billing and Coding Services
Healthcare providers should adhere to many best practices when outsourcing medical coding and billing services to guarantee a fruitful collaboration:
Define your goals:
Before contracting out medical billing and coding services, it’s critical to define your practice’s unique needs and goals, as well as key performance indicators (KPIs) and metrics for success.
Choose the right partner:
When choosing an outsourced partner for medical coding and billing services, look for suppliers with a track record of success who can offer references and case studies to highlight their qualifications.
Establish clear communication channels:
Communication is essential when outsourcing medical billing and coding services. Establish clear lines of communication and expectations for the information that will be provided with your outsourcing partner.
Monitor performance and provide feedback:
To help your outsourcing partner improve their services, track their performance regularly and give them comments. This can involve checking in frequently, giving constructive criticism, and analyzing data and reports.
Top Destinations for Outsourcing Medical Coding and Billing Services:
Healthcare providers may want to take into consideration the following top destinations when it comes to medical billing and coding outsourcing:
The Advantages of Outsourcing to India
According to a poll conducted by the National Association of Software and Services Corporations (NASSCOM), India has been a hot choice for Outsourcing Medical Billing, as 58% of the U.S. respondents indicated that India was their top choice for outsourcing healthcare to US corporations.
Healthcare providers can now more easily outsource their medical coding and billing services to India thanks to the country’s efforts to enhance business conditions and draw in foreign investment. According to a report by the US Department of Commerce, India has a good business climate, with a stable political and economic environment and a government that welcomes foreign investment.
Other Contenders
While India is the top choice, other countries are also worth considering when outsourcing medical coding and billing services.
The Philippines: A Close Second
After India, the Philippines is the second most popular medical coding and billing outsourcing location. Well, that’s because of its sizable English-speaking populace and welcoming business climate. Because the typical hourly rate in the Philippines for medical coding and billing services is between US$7 and US$10, healthcare providers may find that outsourcing to the Philippines offers a reasonable combination of quality and price.
China: Rapid Growth Rate
China’s compound annual growth rate (CAGR) for medical coding and billing outsourcing is projected to be 14.9% between 2020 and 2027, making it a top destination. More than 9 million healthcare workers work in China, including medical billers and coders. By outsourcing to China, healthcare companies can gain access to a skilled workforce with specific knowledge and experience.
Bulgaria: High Literacy Rates
Bulgaria offers a good business climate. According to a report by Outsourcing Insight, with a 98% literacy rate and a highly educated labor force, Bulgaria offers medical coding and billing services at a cost of between $15 and $30 per hour, which is attractive to healthcare providers.
Colombia: Emerging Destination
Colombia has become an emerging destination for medical coding and billing outsourcing due to its competitive costs and growing bilingual workforce. The country’s outsourcing market is growing, with a 2023 report indicating a 12% year-over-year increase in the sector. Colombia’s favorable time zone alignment with the U.S. and a focus on improving business infrastructure make it an attractive option for healthcare providers.
Argentina: Skilled and Cost-Effective
Argentina offers a skilled and cost-effective labor pool for medical coding and billing services, with particular strength in the IT and healthcare sectors. According to recent statistics, Argentina’s outsourcing industry grew by 10% in 2023, driven by its educated workforce and government incentives to promote foreign investment. The country’s high level of English proficiency and competitive labor costs are significant advantages for U.S. healthcare providers seeking reliable outsourcing partners.
Bring Down the Cost of Outsourcing Medical Billing and Coding
OutsourceRCM is one of the foremost healthcare RCM management companies with 15 years of fruitful experience in U.S. healthcare. We make Medical billing and coding outsourcing a cool breeze. We can help healthcare providers meet their objectives and enhance operations by providing a range of tailored options for outsourcing medical billing and coding.
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