Which Medical Billing Solution is Better: In-house or Outsourced?


The better medical billing solution between In-house and Outsourced in the medical industry is a matter that creates a lot of trouble to a number of medical professionals. A good number of doctors devote more time on filling out forms and processing transactions instead of spending more time on ensuring the wellness of the patients they see.

This problem is what the medical billing companies address; they give room to their clients, doctors and medical institutions, to focus more on their core businesses.

Choosing between Outsourced medical billing or maintaining an In-house billing staff is one of the most important decisions a medical practitioner or institution can make. It can be one of the most difficult as well.

To make a decision that will benefit your revenue cycle, we will outline the pros and cons of both Outsourced and In-house medical billing.

Pros of Outsourced Medical Billing

  • Consistency in billing

Not only will a medical billing company frequently send claims to insurance carriers, they will also follow up on every unpaid, underpaid and denied claims. Often times, claims will likely be denied due to a lack of information or inaccurate documentation. As soon as the issue is fixed, the claim can be processed for payment.

  • Regularity of billing

Providers do not have to worry about bills not being sent out in a timely manner because of staff illness or heavy workload. Bills and claims are sent regularly and on time through the medical billing company.

  • Improved billing operations

Medical billing companies routinely provide practice performance reports. These reports provide valuable information on the financial health of the practice as well as the performance of the billing company.

  • No need to spend on support functions

To maintain an In-house team of medical billing experts, medical practices and facilities have to spend on support functions like IT and HR. It is mandatory to provide any office function with these basic services to derive the desired results from it. However, by outsourcing the medical billing process, physicians and medical institutions can easily stay away from these otherwise required expenses.


Cons of Outsourced Medical Billing

  • Loss of Direct Control

Outsourcing medical billing may result in loss of direct control of the billing process, which may be concerning, of course. You may be required to trust the medical biller or medical billing company.

  •  Millennium Medical Billing compensates the loss of direct access by providing dedicated account manager     for each client and best in class productivity and financial reports.


Pros of In-house Medical Billing

Although there are certain pros that comes with an In-house billing system, an In-house billing system can run into problems handling workflow and may end up not working the way it is supposed to do. That is where a professional billing company like Millennium Medical Billing come into play.


  • The biller is Accessible anytime

Issues concerning billing could be more easily addressed when billing is done In-house. If there are any issues, all it requires would be to discuss the issues with the staff on your premise by taking a more detailed look at the claims. On the other hand though, a professional medical billing company like Millennium Medical Billing could give you the same direct access while reducing the human resource overhead.

  • Patient Confidentiality

In-house billing could offer more control over the patients’ files maintaining a higher patient’s confidentiality standards. If the confidentiality of the information is not safeguarded, the patient may not be comfortable in sharing further information and the bonding between patient and physician is likely to be diminished. Millennium Medical Billing HIPAA compliance and confidentiality standards should make you feel comfortable when handling your patients’ information.


Cons of In-House Medical Billing

  • Billing operations can slow down

It does not matter if an In-house billing staff comprises of one person or three, if someone is away from the office, the billing team can see a sharp plunge in productivity. This will likely have an adverse impact for a couple reasons. First, those left behind at work will have a lot more work to do. Second, the biller will have a lot of work to catch up with when they return to the office. Finally, cash flow into the office may significantly decrease due to the stall in billing operations.

  • Extra resources needed to keep up with the changes

In-house billing can lead to a number of extra resources needed for the company to operate. If a practice hires a biller who doesn’t perform accurately, besides the financial damage caused by miss-billings or incorrect billings, the practice would now have to invest in training and time spent on employees instead of taking care of patients while generating revenue.

Outsourcing is the way to overcome such issues, if the operations are handled by a professional billing company. A team of trained and certified billing experts verifies all patient demographic information, insurance eligibility and benefits to ensure proper claim submission.

Not all medical billing companies provide the same type and quality of services. Millennium Medical Billingare specialists in medical billing services and revenue solutions. Besides specialty billing, we offer additional valuable services including: Medical Coding Services, Medical Credentialing Services, Medical Consulting and Revenue Cycle Services, Practice Marketing and Healthcare IT Services for medical practitioners and facilities to help improve and streamline their business growth.



Step By Step Instructions To Avoid Expensive Medical Billing Mistakes

The keys to financial achievement in a medicinal practice incorporate enrolling the ideal specialists, attendants, assistants, and other key workforce and after that situating yourself in the group as the main healthcare provider. Judicious supervisors will dependably be watchful for cash that is leaving the practice, whether because of issues in planning, unpaid cases, or simply the way that you are hobbling your staff by influencing them to utilize obsolete or inadequate software systems.

Do 4 out of 5 of your bills have errors? Mistakes that you make in billing can be very expensive for your practice as well as anger your patients. To avoid making these types of mistakes, you need to know what to watch out for.

Common Medical Billing Errors

Are you familiar with the most frequently occurring errors in medical offices? Here are the ones that come up the most.

Data Entry Errors is a common type of mistake and can be the most costly. Some common errors include:

  • Incorrect patient information – Incorrect name spellings or policy numbers can lead to an immediate denial by insurance companies.
  • Incorrect quantity – Can be in the form of medication and the quantity given. Another example of an incorrect quantity is misstating the number of nights stayed by a patient at an in-patient facility.

Coding Errors

These are also frequent and can prompt refusals or even legal action if a patient is cheated. You may discover patients leaving your practice on the off chance that they find out about huge errors made in coding with different patients, so stay sharp and always take advantage of the latest version of your software.

  • Diagnosis and Treatment mismatch– sometimes, payers will deny a claim because the coding of these two things fails to match. This kind of distracted blunder can show more difficult issues in your staff, so it’s incumbent on you to make sure the information is straight right from the start.
  • Unbundling – This happens when the provider charges related services as separate from a bill when they fall under the same medical code. Experience and perhaps additional training is needed to weed out this type of error in your staff.
  • Upcoding/Under-coding – Errors of this sort happen when patients’ bills don’t precisely speak to the services they got. Remember this is exceedingly illicit and can bring about legal action if a patient finds the error on their bill, on top of being costly to your practice
  • Not checking insurance in advance – By not confirming what a patient’s insurance covers before you perform the tests, you can find yourself with denied claims.

Medical billing is an important component of practices, ensuring smooth operation of the revenue cycle. Medical billers have to understand different medical regulations and private and public insurance plan policies. They need specialized knowledge of claim follow-up, claim denial resolution, posting payments and bill adjustments, appeal submissions, and collections management. Efficient management of these components ensures improved revenue flow throughout the practice.

The doctor or offices that need a medical billing and coding specialist do benefit in more ways than one. Having our medical billing and coding specialist frees them up from lots of management difficulties.

At Millennium Medical Billing our billing and coding specialist provides a smooth workflow in processing payments, details, and other requirements to professionally avoid the problems above. Our primary responsibilities include processing medical insurance and claims for reimbursements. Other duties include proper coding of medical records, diagnostic tests, and other reports about patient claims.


Contact us now for a complimentary analysis of your billing, coding and compliance requirements.


Providing patients’ care should be priority number one for a medical practice. Operating in a complexed field such as healthcare however leads medical practices to deal with additional aspect of the business.

Let’s get some clarity on what is medical billing.

Medical billing Is the processes that practitioners such as doctors and nurses use of creating and submitting claims to insurance companies in order to receive payment for medical services provided.
Medical Practices have been focusing their attention on the healthcare aspect of the practice and specifically patients’ care rather than the business side. The complexity of the field however may lead you towards the need of knowing more about medical billing and have a better understanding of how the system of payments fits in with the art of practicing medicine.
Medical practices, hospitals, clinics, and other organizations’ billing transactions are majorly operated through electronic means, although paper systems are still being largely used even if considered antiquated, e.g. PIP claims. Medical billing software and medical billing services help to automate processes and speed up the flow of revenue in your organization.

Medical Billing vs. Medical Coding

Medical billing and medical coding are not the same thing.
While medical billing involves sending claims to insurance companies and tracking these claims until you receive payment, medical coding is the process of translating diagnoses established and procedures rendered to patients in set of precise codes.
With so many codes and processes to work with and keep track of, modern medical organizations utilize professional services and sophisticated computer systems with specially designed software.

What Is Medical Billing Software?

Using software instead of trying to manage most or all of the details by hand with paper documents drastically speeds up the entire process and may reduce mistakes on claims also.
As a matter of fact, one of the most appreciated features in a medical billing software Is the validation of claims and codes before sending them out, to correct any typographical or coding errors first. Software used in medical billing May also include the ability to verify patients’ eligibility and insurance status before treatment is provided to ensures a smoother experience for the patients and staff giving them the opportunity to plan and work in advance financial responsibilities.
The electronic Superbills, which can typically be customized, would save time for the practice, while tracking claim and payment details can help relevant data to be displayed through reports.
Additional EHR/EMR or clinical module integrations may increase efficiency between the medical practice’s staff and the billing team.


Although the main aspect of a medical practice is patients’ care, medical billing, as well as other aspects, are vital for the success of a medical practice and its proficient business operation.
Following the same topic, we do suggest checking out the article “In-House Medical Billing vs Outsourced Medical billing – Pros and Cons”.

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