Billing is a critical component regardless of the size of a physician’s office. It takes professional billers and coders a consistent review of claims and reimbursements to execute properly. So when should physicians opt for outsourcing medical billing? Are there any pros of outsourcing? Is outsourcing expensive? What are the pros of outsourcing? Let’s find out everything about medical billing outsourcing and if it is right for you.

An Outlook On Outsourcing Medical Billing

The worldwide medical billing outsourcing sector was predicted to grow at a CAGR of 13.2%, from $8.415 billion in 2020 to $9.528 billion in 2021. The growth is mainly attributable to businesses restarting operations and settling into the new normal while rebounding from the COVID-19 implications, which had previously led to stringent prevention strategies, including social distancing, working remotely, and the cessation of commercial operations, which posed operational challenges.

Medical billing outsourcing companies are employing Electronic Health Records (EHR) and cloud-based medical billing systems. Compared to other options, cloud-based medical billing software offers more confidentiality for patient information, and organizations are introducing cloud-based systems to provide increased security for their clients. Hence, patient data privacy is among the major pros of outsourcing medical billing.

So now, let’s check the pros of medical billing outsourcing. 

The Advantages Of Outsourcing Medical Billing

1. Reduced Medical Billing Errors

Inaccurate collection and billing activities can result in a significant revenue drop. Undoubtedly, everyone makes errors. Yet, a single error in medical billing, codes, and receivables might cause a delay in reimbursement or, worse, a claim denial. In the presence of inaccurate patient data, duplicate billing, and authorization issues, billing errors may be costly.

However, outsourcing medical billing helps ensure that the billing procedure is current, less error prone, and more lucrative. Offsite medical billers employ quality assurance procedures that enable them to make fewer errors and retain precision.

2. Guaranteed Compliance

As you may already be aware, healthcare laws are constantly evolving, making it more difficult for medical billing employees to comply with changing rules and protocols. Moreover, each evolving standard needs a dedicated specialist whose prime objective is to remain current with new knowledge.

Outsourcing billing companies maintain their competitiveness by keeping up with any changes. Therefore, they can ensure that they file accurate claims and maintain compliance.

3. Accelerating Insurance Payments

When billing errors reduce, reimbursements and payment processing can be quicker. Outsourcing medical billing services to a reliable company may experience streamlined workflows, improved income, and more significant profit potential. Hence, outsourcing medical billing facilitates quicker payments and turnover.

4. Cost Savings

Ultimately, outsourcing is largely about reducing costs. By partnering with a medical billing provider, your firm would save on administrative pay, benefits, and equipment and supplies. Likewise, you may decrease expensive backend billing mistakes, boosting your bottom line.

5. Enhanced Efficiency

Outsourcing medical billing eliminates a substantial amount of administrative effort. With less time spent recruiting and training administrative employees, doctors and staff have more time to concentrate on patient requirements. As a result, productivity rises, resulting in improved patient experiences, better ratings, and more referrals.

The Cons Of Outsourcing Medical Billing

Although there are several benefits to outsourcing medical billing, there are also some disadvantages. They are as follows:

1. Lack of Autonomy Over Resources

This is a challenge faced by many practitioners. Whenever they outsource to a vendor, they believe they no longer have unrestricted access to patient information and other resources. Frequently, these issues result from incompatible software between providers and the business.

2. Too Costly

For many practices that outsource medical billing, hidden vendor expenses may also be a significant issue. These expenses make outsourcing costly for your practice.

3. Security Issues or Inadequate Security Procedures

When outsourcing the billing process, patient data privacy is a vendor’s top concern. Or else, you could violate HIPAA rules, which may result in severe legal consequences. Hence, ensure that the services you select are HIPAA-compliant, which means many security methods secure patient data.


Outsourcing medical billing is an essential and intricate aspect of healthcare practice. It may improve the amount of revenue collected, lower liability risk, and simplify the process. Regardless of the size of your company, it may also provide financial challenges. Therefore, before making a quick judgment, healthcare practitioners should thoroughly comprehend all the details of the contract. Let NEMB help you with your medical billing needs.


Need more information or have questions on any type of billing we do?

Affiliates of VSS Medical Technologies

Sign up for company updates and latest news from NEMB.

Get In Touch 


888 - 771 - 6115
508 - 297 - 2068

19 Norfolk Avenue
South Easton, MA 02375


©Copyright 2024 New England Medical Billing Group LTD. All rights reserved.