Delivering Performance with Outsourced Lab Billing Solutions

1. Delivering Performance with Outsourced Lab Billing Solutions Laboratory Medical billing, like other sectors, has had its fair share of debate over the advantages of outsourcing. Some laboratory owners have experienced underperforming laboratory medical billing companies, going only after the easy-to-accomplish tasks, while others have found that outsourcing has actually helped save their lab practice and they will never have an in- house department again. While being always up to date with the ever-changing laboratory billing guidelines there are several reasons to go for it. But it is hard to decipher the actual truth. It is hard to know the real value that outsourcing holds. Prioritizing Value One must have faced this question in their everyday lives- Shall I spend extra in order to get better quality? A high-quality product will deliver more value in the long run, compared to a cheap product that fails quickly. We have everyday examples to justify the statement like a good pair of shoes etc. Cost and Value are different. And it is the value that we are trying to maximize. Here are some examples of how lower costs can actually reduce the value: • Labor Rate & Gross Hours Outsourcing offers comparatively lower rates for labor. However, the complexity in lab billing needs may precipitate an increase in labor and drive net costs up. • Overhead costs Claims about cost savings may sometimes fail to take into account the “actual” cost that includes overhead expenses like software, benefits, management, facilities, etc.

2. Low rates can make outsourced lab billing companies minimize the involvement of seasoned professionals, resulting in unresolved complex issues. • Fixing errors Mistakes in medical billing are expensive not only in the form of lost payments but the cost to identify and fix problems as well. This requires large numbers of billing hours and management resources for identifying and solving problems. • Patient experience Cutting costs can have a negative impact on patient numbers. If they have a tougher time communicating with the right person to address their issues and have to wait longer to get resolutions, they will eventually leave you, and so will revenue. So make sure the partner you choose, delivers on this part too. Focus on ROI Regardless of whether or not, outsourcing reduces costs, it can have both negative and positive impact on revenue. So, when adding cost savings to collections, there is always a net return (positive or negative), distinct from costs. Assessment needs to be framed in terms of ROI and when done so, one can begin to make more informed decisions about outsourcing the lab billing services. Following are some aspects of an ROI based evaluation strategy: • Collections performance

3. Selecting a profitable lab medical billing company is important. Otherwise, it may have a negative impact on the collections. If the performance of in-house billing staff is not up to the mark, financials need to be improved by outsourcing the lab medical billing work. • Performance Analysis Regular analysis of revenue collections structure helps in making difficult decisions easier. Measuring performance is a critical thing to do. Outsourced billing companies are always compliant with the laboratory billing guidelines and have proscribed KPIs to offer performance reports consistently. • Staying current with compliance & regulation It is indeed a daunting task for lab practices to keep up with the ever-changing billing and coding requirements. Most in-house medical billing teams would need to stick with laboratory billing guidelines for seamless cash flow and better growth opportunities. An outsourced solution for billing management is also a better option. An outsourced laboratory billing company can easily afford a full-time billing team to stay compliant with the statutory requirements and make your life much easier. About Bikham Bikham Healthcare is a leader in offering outsourced lab billing services to laboratories of all sizes and nature. With 14+ years of experience under its belt, they make sure to deliver the best and the most profitable services to its clients. 100% Compliance with laboratory billing guidelines and HIPAA laws is another reason that you can trust them.