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In-House vs. Outsourcing Medical Billing, Which Is Better for You?

The decision to manage medical billing in-house or outsource it to a medical billing company is often a dilemma for many practice managers and doctors. Such a decision is based on various factors such as resources required, size and age of the business, and other considerations as there is no thumb rule of set practice.

As medical billing is related to the business’s sensitive core, such as revenue cycle and service billing, a practice should carefully evaluate the pros and cons of whether to keep this procedure in-house or to outsource it to a medical billing company, such as Park Medical Billing. Here are some of the pros and cons of both outsourcing medical billing and maintaining them In-house.

Advantages and Disadvantages of In-House Medical Billing


The significant advantage of having medical billing in-house is that the practitioners and clinicians can retain control, especially when they have a trusted employee to perform such duties. Practitioners and clinicians like having direct control over their financial operations.


About medical billing, it is mostly done with additional costs. This includes expensive software, employee’s salaries, and benefits performing billing duties. In-house operations demand reliable standard operating procedures with training continuously, making it more problematic for some practitioners as they don’t have many funds to cope up.


Advantages and Disadvantages of Outsourcing Medical Billing


Outsourcing medical billing to professional medical billing companies is less expensive. Keeping in mind the operational costs involved in maintaining medical billing, outsourcing such a procedure makes sense. Outsourcing helps transparency and enhanced consistency, making it easier for practitioners to forget about staffing requirements and concentrate more on their patients’ service.

Medical billing companies are professional organizations with expertise in insurance. So risking your claims doesn’t make sense, especially when it’s a full-time job to record billing and follow insurance protocols.


One opinion regarding outsourcing medical billing is that it is difficult for some practitioners and clinicians to delegate control of such a sensitive process to a third party. Some professional medical billing organizations charge a percentage of what they recover as compensation for the service they provide. This makes it difficult for practitioners to manage their billing expenses since they widely differ in busy and slow-moving months.

Another significant drawback of outsourcing medical billing is the terms of the contract with the outsourced party. The agreement may have hidden charges; hence it must be prudently read and signed.


Considering the advantages and disadvantages of both, many practitioners and clinicians are willing to outsource and delegate their medical billing to a professional third party. This helps in making more money as full advantage of experienced service potentially increases revenue.

Secondly, outsourcing helps reduce stress for practitioners as they focus more on the quality of service to patients. You no longer need to deal with complicated insurance protocols as medical billers are experts in complex financial transactions. Moreover, professional medical billers are highly motivated to increase your revenue as the more they recover and on time the more they can earn alongside you.