Outsourcing

Outsourcing

Maria Santoyo

Rasmussen College

Author Note

This paper is being submitted on July 25, 2016, for Laura Sheneman’s H410/ HAS 4110 Section 01 Healthcare Operations Management course.

Outsourcing

In looking into any decision making there has to be some criteria that need to be evaluated before making a decision. I like to start with looking at the pros and cons first for each. For in-house billing there are pros and cons for making that decision and the same for outsourcing the billing there are pros and cons.

For in-house billing, the pros are the office retains control, by their long trusted employees that execute medical coding (Care Cloud, 2012). There is also the return on investment, once the practice trains the employees to become medical billers and invest in the billing technology, the return on investment is the revenue that is generated (Care Cloud, 2012). The last pro is the close proximity if you have an issue your billing department is on hand (Care Cloud, 2012). The cons are higher costs, paying an employee salary and benefits can higher than outsourcing solution, liabilities such as there can be neglect can it can be unnoticed if the manager is not keeping a close eye (Care Cloud, 2012).

For outsourcing billing, the pros are it is less expensive especially when starting a new business (Care Cloud, 2012). There is transparency, with comprehensive reports, automatically or upon request (Care Cloud, 2012). Last, the enhanced constancy, contractually they are obligated to perform certain services such as appealing denials, for you with a certain level of success (Care Cloud, 2012). For cons there are hands off, with managers that need to be hands on they have no control (Care Cloud, 2012). The variable costs, billing companies charge a percentage of what they collect, so the practice expenses are not controlled (Care Cloud, 2012). Last, there are hidden fees, need to be aware of the contract as there can be start up fees,...