What is a third-party medical billing service?
A third-party medical billing service takes over the business functions and accounting details of your medical practice. They typically provide a variety of services including charge entry, production of claims and patient bills, payment posting, accounts receivables management, compliance, financial reporting, and more. Successful billing services can help you increase revenue, lower costs, and avoid many of the hassles of running your medical practice. They typically charge between 4 and 12 percent of collections depending on the services provided, your medical specialty, and your location.
As a practice grows beyond its initial capacity to cope with its own paperwork, providers outsource their medical billing process to a third party known as a medical billing service. These billing services typically take a percentage of a practice’s revenues as payment. The main aim of these entities is to reduce the burden of paperwork for medical staff and to recoup lost efficiencies caused by workload saturation, paving the way for further practice growth.
