Advantages of Outsourcing
The focus on outsourcing over the last several years has had quite an impact on
the way companies do business. When it comes to advantages of outsourcing, they
are countless and truly differ from company to company. No longer do we spend
countless hours and dollars building infrastructure that is prevelant to many
organizations. It is commonly known that it makes better business sense to
build an infrastructure by leveraging companies that have the expertise in the
business processes that are needed. Ask an executive if it shows good judgment
to outsource business processes, and the answer is a resounding yes.
Etech exemplifies the advantages of outsourcing one of the most critical aspects of
any medical practice.... the billing function. Some of those most commonly cited include:
• Focus can remain on core business activities
• First-class solutions and expertise are accessed
• Competitiveness is enhanced
• Cost structure becomes variable
• Inside resources are freed for other purposes
• Capital funds are made available
• Expertise is accessed
• Operating expenses are reduced and controlled
• Activity is better managed
• Operations can be planned and scaled with greater flexibility
• New ideas are acquired
• Investment in assets is lowered
• Risk is reduced
It turns out that these advantages, as well as many others, indeed result from a good outsourcing strategy.
However, there are three KEY benefits and advantages of outsourcing that truly make this process a logical solution for many small businesses, listed as follows:
• Outsourcing is cost effective
• Outsourcing business processes allows a greater focus on core business
• Outsourcing provides access to first-class solutions
Some other specific perks your practice may benefit from include:
Human Resource Management
In considering outsourcing, it’s important to think with a long-term vision in mind. The two most popular reasons Physicians eventually decide to outsource the billing function is difficulty in managing the human resource cycle and level of expertise. Human resource management problems arise from employee turnover and practice growth and it is always critical to the success of any medical
practice to accurately and timely get paid for all services performed.
Employee Turnover
Many medical practices go through high turnover periods, while others find loyal people who dedicate many years to working for the same Physician. The human resource management cycle can be very difficult for a Physician to maintain, considering once the biller leaves, usually the Physician is left with no other option but to hire someone who has very little experience and requires many months of training.
Ask yourself these questions:
Would you be more worried when your receptionist quits or when your biller leaves?
Do you have the time and resources to find someone who is experienced, reliable and can do the
job right with the amount of attention your billing deserves?
Are you prepared to go through several months of cash flow shortfalls?
Organic Growth
Growth is a normal part of any business. As a practice begins to thrive, revenues begin to increase and
the workload quickly multiplies. Coupled with the complexities of managed care, it becomes important to hire new employees to meet the increased workload demands. When a Physician keeps their billing in-house and the time comes to hire another biller, the Physician is increasing his/her fixed cost substantially. Not only is finding the right person for the job difficult, but hiring an extra employee can be a heavy cost-burden.
When a physician outsources the billing function, the human resource management problems are eliminated on the part of the Physician. Etech is not immune to turnover, however, we are better able to absorb
that attrition by having a pool of employees within our organization who are specialized in several areas of medical billing. When we work with a client, we work as a team; i.e. we do not give one employee all of one client’s billing. In this way, we can easily manage the normal attrition that occurs in companies and medical practices today. Additionally, as you grow your practice, your cost/revenue percent remains the same without any excessive increases.
the way companies do business. When it comes to advantages of outsourcing, they
are countless and truly differ from company to company. No longer do we spend
countless hours and dollars building infrastructure that is prevelant to many
organizations. It is commonly known that it makes better business sense to
build an infrastructure by leveraging companies that have the expertise in the
business processes that are needed. Ask an executive if it shows good judgment
to outsource business processes, and the answer is a resounding yes.
Etech exemplifies the advantages of outsourcing one of the most critical aspects of
any medical practice.... the billing function. Some of those most commonly cited include:
• Focus can remain on core business activities
• First-class solutions and expertise are accessed
• Competitiveness is enhanced
• Cost structure becomes variable
• Inside resources are freed for other purposes
• Capital funds are made available
• Expertise is accessed
• Operating expenses are reduced and controlled
• Activity is better managed
• Operations can be planned and scaled with greater flexibility
• New ideas are acquired
• Investment in assets is lowered
• Risk is reduced
It turns out that these advantages, as well as many others, indeed result from a good outsourcing strategy.
However, there are three KEY benefits and advantages of outsourcing that truly make this process a logical solution for many small businesses, listed as follows:
• Outsourcing is cost effective
• Outsourcing business processes allows a greater focus on core business
• Outsourcing provides access to first-class solutions
Some other specific perks your practice may benefit from include:
Human Resource Management
In considering outsourcing, it’s important to think with a long-term vision in mind. The two most popular reasons Physicians eventually decide to outsource the billing function is difficulty in managing the human resource cycle and level of expertise. Human resource management problems arise from employee turnover and practice growth and it is always critical to the success of any medical
practice to accurately and timely get paid for all services performed.
Employee Turnover
Many medical practices go through high turnover periods, while others find loyal people who dedicate many years to working for the same Physician. The human resource management cycle can be very difficult for a Physician to maintain, considering once the biller leaves, usually the Physician is left with no other option but to hire someone who has very little experience and requires many months of training.
Ask yourself these questions:
Would you be more worried when your receptionist quits or when your biller leaves?
Do you have the time and resources to find someone who is experienced, reliable and can do the
job right with the amount of attention your billing deserves?
Are you prepared to go through several months of cash flow shortfalls?
Organic Growth
Growth is a normal part of any business. As a practice begins to thrive, revenues begin to increase and
the workload quickly multiplies. Coupled with the complexities of managed care, it becomes important to hire new employees to meet the increased workload demands. When a Physician keeps their billing in-house and the time comes to hire another biller, the Physician is increasing his/her fixed cost substantially. Not only is finding the right person for the job difficult, but hiring an extra employee can be a heavy cost-burden.
When a physician outsources the billing function, the human resource management problems are eliminated on the part of the Physician. Etech is not immune to turnover, however, we are better able to absorb
that attrition by having a pool of employees within our organization who are specialized in several areas of medical billing. When we work with a client, we work as a team; i.e. we do not give one employee all of one client’s billing. In this way, we can easily manage the normal attrition that occurs in companies and medical practices today. Additionally, as you grow your practice, your cost/revenue percent remains the same without any excessive increases.
Cost Effective Solution
When outsourcing with Etech, you save money and resources in many areas because they are
eliminated from your worries (and your checkbook), such as:
• Computer hardware
• Maintenance fees/support contracts
• Software and upgrade costs
• Delay in claim research
• Delay in claim resubmission
• Time spent on phone with insurance companies
• Training seminars/education
• Human resource recruiting
• Holiday, vacation and sick pay
• Wages, taxes and benefits
• Office space dedicated to the billing function
Demand Accountability from your Billing Service
When you outsource your billing service to Etech, we typically aquire a percent of whatever is collected; therefore, the incentive and the headache to collect falls on us. This production aspect of outsourcing works
to your advantage.
The misconception is that by outsourcing to a billing service, the Physician loses control of their billing. To the contrary, we maintain that outsourcing actually gives you full control over your billing, since the ease at which you can switch between billing companies is much simpler than switching between employees.
Etech will provide you with all the necessary reports and feedback so that you’ll know exactly what was billed, who is paying and most importantly, who is not.