Outsourcing your physical therapy practice’s billing could increase your clinic’s profits, while also ensuring a high level of customer service. The decision to hire a third party is not an easy one, so here are five warning signs that point to the need for contracting out your billing.
1. Employee retention is low
Your clinic’s billing department is responsible for collecting and managing your practice’s funds. High employee turnover can negatively affect the process as constant influx and exit of team members leads to inefficient and delayed billing for clients. Piled up invoices hamper the service your patients receive. In addition, your clinic’s revenue takes a hit as you’re not only waiting to get invoices out to clients, but for the payment to be sent back to your practice.
2. You need help with compliance
Beginning in Oct.1, 2015, all practices under HIPAA were required to change their billing code to comply with ICD-10. This legislation replaces a 40-year old billing code and is meant to stay up to date with new technologies and treatments. If your physical therapy practice doesn’t have the in-house expertise necessary to implement the new code, it may be time to outsource your billing. A professional can ensure your clinic meets all the requirements for ICD-10 and is properly and correctly reimbursed for your services.
“Without patients as a priority, your practice could suffer.”
3. You’re not spending enough time with patients
It’s easy to get caught up in the administrative end of your practice, but what about the reason you got into physical therapy? Outsourcing your billing procedures gives you and your team the necessary time to grow relationships with patients, partners and each other. If you don’t prioritize patients, your practice could suffer. Rebalancing your workload by taking one administrative duty off your shoulders allows your therapists to work on retaining their client loads and attracting new patients to your clinic.
4. Practice expansion in the works
If your clinic is looking to upgrade its space and amount of patients, outsourcing your billing could be the best move. An expansion will require time, which you may not be able to spend dealing with your clients’ payments. In addition, if your billing software is already outdated as you relocate, starting fresh with a new system could make all the difference in retaining current patients and attracting first-time clients.
5. Accounts receivable timeline is high
A small delay in a patient’s payments is understandable, but if your practice’s average AR records indicate an extended payment period, outsourcing your billing could cut down that time. A third-party company would be responsible for collecting and processing a client’s insurance, as well as their fee for your services. With the assistance of this outsourcer, your clinic doesn’t look like the bad guy who is pushing for payment. Instead, the billing business takes more of the heat.
Outsourcing your physical therapy practice’s billing could save you both time and money. Increased time with patients, better employee retention and faster turnaround time for payments helps your clinic focus on what’s important: treating patients.
This article is brought to you by PREFERRED Therapy Providers Inc. PREFERRED is the nation’s leading payor management services network. Our expertise is working with physical, occupational and speech therapy practices – from single clinics to multiple clinic locations.