Practice Management Alert

Question: My practice is thinking about outsourcing our billing. What should I look for in a billing company?
  
Montana Subscriber Answer: If you decide to have an outside company handle your practice's billing, it's essential that you find one you can trust and that will meet your needs. To help ensure you make the right decision, there are many questions to ask, notes consultant David Fish with D&B Medical Management Solutions, Inc. in Columbia, MD.
 
When considering a particular billing company, the first thing you should find out is how long it's been in business. Generally, the safest bet is to look for a company with a track record that goes back at least three years, Fish says. Also, take the size of the business into account, and consider how it coincides with your needs. A very large company will usually be reliable (that is, you can probably rest assured it won't go under, leaving you high and dry); on the other hand, they usually don't offer much in the way of personal service and there's often high turnover, which means you could wind up being passed around the organization, Fish points out.
 
You also want to find out how the company will charge you for its services. Most billing companies either charge based on how much they bill out for you or based on a percentage of the receivables collected. The latter is preferable for the medical practice, because the company gets paid based on how much reimbursement it secures for your practice. That arrangement gives the company more incentive to work hard on your behalf, Fish explains. Also, find out if extra costs (such as postage) are included in the company's fee.
 
Other essential questions to ask a prospective billing company are as follows, according to Fish:

  Does the company submit secondary claims? You'd probably do best to avoid companies that don't, Fish warns.
  How is accounts receivable handled? Some companies charge extra for working old claims, Fish says. Stay away from these guys.
  How does the company bill patients? Find out how many letters the company sends to patients, when they send the account to collections, etc.
  Who handles telephone inquiries about claims? This might seem like a silly question to ask, but many billing companies won't get on the phone to track down claims or resolve payment issues, Fish says. You want to find a company that will take care of this chore for you.
  Will the company be HIPAA compliant when October rolls around? Also, keep in mind that the billing company you choose will be a business associate for HIPAA purposes, so you'll need a BA agreement in place.
  What kind of software does the company use? Tip: [...]