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Medical billing involves translating patient consultations and admissions into claims sent to insurance companies or the U.S. government (Medicare) for reimbursements.
This process often takes weeks or even months to complete. Sometimes, the insurance company might not pay the entire claim, creating financial problems and forcing many facilities into bad debt.
Dermatology billing solutions emerge as a cost-effective solution to manage this process. Learn how your practice can benefit from dermatology medical billing outsourcing.
Reasons for dermatology clinics to outsource billing solutions
Medical billing and coding require advanced skills and experience, which many facilities lack. For this reason, committing errors is more common than one might think.
The higher the number of errors in a medical claim, the less likely insurance companies will reimburse you in full for your services. Sometimes, they might not reimburse the payment at all. The average denial rate for medical claims is between 5% and 10%.
If the insurance company agrees to pay only a fraction of the bill, the hospital or the patient will shoulder the remaining costs. The billing process is even more complicated since dermatology business models and staffing levels are not uniform. It often results in ineffective revenue cycle management (RCM).
Healthcare BPO is an excellent solution for many dermatology clinics. Service providers dedicate their time, expertise, and resources to managing reimbursements. Partnering with these external providers can give dermatologists and clinical staff members various advantages.
Here are the top seven benefits of leveraging dermatology billing solutions:
1. They can help you focus on patient care
Dermatologists and physicians cannot offer outstanding patient care if they are busy managing their practices’ financial aspects. This challenge is even more pronounced for small dermatology clinics that lack the resources to maintain an in-house team to handle billing and administrative tasks.
Third-party dermatology billing solutions address this gap in human resources and budget. Medical billing outsourcing can free you of non-medical activities and allow you to focus instead on treating patients.
Outsourcing provides access to billing expertise and technology that might otherwise be financially unattainable. This levels the playing field. Smaller practices can compete with larger facilities regarding efficiency and service quality.
Additionally, outsourcing helps reduce stress on your front desk and administrative staff, improving their morale and enabling them to spend more time enhancing the patient experience. In the process, you can strengthen patient relationships, improve outcomes, and grow your practice’s reputation in the community.
2. They can help reduce errors in your claims
Expert dermatology billing solutions can process claims accurately and promptly. Medical billers don’t have to perform other finance-related functions, so they can focus on creating and submitting error-free claims.
Additionally, service providers regularly train on evolving medical billing best practices. From senior billers to new hires, third-party experts are well-equipped to submit accurate medical claims. The extensive training enables medical billers to reduce the number of errors and denied and rejected claims.
With their knowledge in managing medical billing and coding, the BPO team can also offer you feedback and strategies to maximize reimbursements in the future.
3. They can help you save money
Outsourcing dermatology billing offers significant cost savings by eliminating the need for a dedicated in-house billing team. This can save you a considerable amount on employee salaries, benefits, office supplies, additional workspace, and the purchase, upgrade, and maintenance of billing infrastructure.
Leveraging dermatology billing solutions can help you save up to 70% on labor costs alone. Most dermatology billing companies also charge a flat fee per claim or a fraction of the reimbursed claim. That makes outsourcing less expensive than what you would otherwise pay for in-house medical billing staff to provide the same quality of service.
Additionally, outsourcing eliminates costs associated with training and upskilling employees to keep up with the latest coding and billing regulations.
4. They can improve cash flow
What happens to your workflow if one of your billing staff members falls ill or goes on vacation? In such situations, claims often have to wait to be processed and submitted until the staff returns to work. It creates a bottleneck that slows reimbursements, delays revenue generation, and strains your clinic’s financial health.
Interruptions in the billing workflow inevitably affect compensation and cash flow. Unresolved claim denials result in an average annual loss of $5 million for hospitals, accounting for up to 5% of their net patient revenue. In dermatology practices, mismanagement or delays in billing can lead to even more severe financial consequences.
These issues highlight the importance of a streamlined billing process. With dermatology billing solutions, you can enjoy a steady flow of claims going to the payers and cash coming into your clinic.
Automated systems or outsourced services reduce human error, minimize denials, and shorten the reimbursement cycle. This consistency stabilizes operations, reduces financial stress, and allows for reinvestment in growth opportunities. Constant cash flow contributes to profitability and success in the dermatology field.
5. They can increase patient satisfaction
A 2022 survey revealed that 76% of Americans did not experience positive patient care in three months, and 60% reported negative healthcare experiences. These statistics underscore the growing need for improved patient satisfaction in healthcare.
The ability to offer exceptional patient care is what most, if not all, medical practitioners strive for. However, managing medical billing issues alongside increasing patient demands can make this goal challenging.
Your front desk is already tasked with welcoming patients and answering calls. With third-party dermatology billing solutions, your staff can focus on delivering better service. This leads to greater efficiency, higher productivity, and improved morale.
More importantly, a streamlined approach improves patient flow and customer satisfaction. Patients appreciate not having to wait in long queues and receiving professional assistance with their billing concerns, leaving a lasting positive impression of your practice.
6. They can guarantee billing compliance
The medical industry constantly changes, driven by insurance regulations and coding guidelines updates. Dermatology clinics face unique challenges in navigating these changes, as compliance with dermatology billing guidelines is essential for accurate reimbursements.
Managing dermatology billing in-house demands significant time and expertise. It often requires full-time attention, which can strain clinic resources and distract from patient care.
Many practices benefit from partnering with third-party dermatology billing solutions to overcome these challenges. They can stay current with the latest regulations and coding updates, reduce the risk of denials, and ensure compliance through rigorous team training.
Additionally, outsourcing improves RCM by streamlining claims submissions, reducing errors, and maximizing reimbursements while allowing clinic staff to focus on patient care and practice growth. By leveraging third-party billing services, dermatology clinics can enhance operational efficiency, reduce administrative burdens, and achieve excellent financial stability in an increasingly dynamic healthcare environment.
7. They can boost revenue
Dermatology facilities can generate higher profits by promptly processing and submitting medical claims, decreasing overhead costs, and increasing reimbursed claims. This is perhaps one of the most significant reasons to leverage third-party dermatology billing solutions.
The increase in revenue enables practitioners to offer higher-quality service, hire more experienced staff, and invest in the latest technology and equipment, enhancing the patient experience. As patients become selective about their healthcare choices, offering superior service is necessary to stay competitive.
Moreover, improved revenue allows facilities to focus on expanding their services, such as offering more specialized treatments or opening additional locations. The enhanced efficiency and professionalism of dermatology billing solutions also contribute to stronger patient trust and loyalty.
A practice that operates seamlessly and offers cutting-edge care becomes preferred, ensuring long-term success in a competitive industry.
Cost of dermatology billing solutions
Dermatology billing solutions charge payments in three ways: by percentage, per claim, or through hourly rates. Good external dermatology billers detail their collection methods with their clients in the contract.
For the first payment option, dermatology billing solutions charge a client a monthly percentage of the dermatology practice’s total revenue. This percentage changes depending on the number of patients served, the clinic’s service, and location. However, billers generally charge 2% to 6% of the total monthly revenue.
The second option only requests payment for reimbursed insurance claims. This often costs a few dollars for every successful claim. This mode of payment is ideal for dermatology clinics that do not have in-house billing departments and solely depend on outsourced billing companies.
The last payment option makes the most sense for dermatology facilities that do not see many patient visits, as they do not make enough money to pay the external biller using the first two payment options.
Choosing the right payment model depends on the dermatology practice’s size, patient volume, and financial structure. Collaborating with a professional billing service that understands your unique needs can help maximize profitability while ensuring seamless revenue cycle management.
Features of effective dermatology billing solutions
Dermatology billing solutions optimize cash flow, reduce administrative burdens, and allow practices to focus more on patient care. Here are the distinctive features of effective billing solutions:
- Specialized knowledge in dermatology coding. Expertise in dermatology-specific codes, such as excisions, biopsies, and cosmetic procedures, ensures accurate claim submissions and compliance with regulations.
- Error reduction tools. Automated claim scrubbing and validation tools minimize coding and data entry errors, reducing claim denials and payment delays.
- RCM integration. Comprehensive RCM services, from patient pre-registration to final claim settlement, streamline the billing process and maximize revenue.
- Real-time reporting and analytics. Detailed reports on billing performance, claims status, and revenue trends allow practitioners to make informed decisions.
- Insurance verification and pre-authorization. Efficient insurance eligibility checks and pre-authorization services prevent unnecessary claim rejections.
- Compliance with HIPAA and regulations. Secure handling of patient data and adherence to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and other regulatory standards promote data protection and compliance.
- Flexible software solutions. Customizable software that integrates seamlessly with electronic health record (EHR) systems and adapts to clinic workflows enhances efficiency.
- Dedicated support and training. Access to a knowledgeable support team and ongoing staff training ensures smooth operations and quick resolution of billing issues.
- Claims follow-up and appeals. Persistent follow-up on denied claims and an efficient appeal process help recover lost revenue.
- Patient-friendly billing. Transparent and easy-to-understand billing statements improve patient satisfaction and reduce confusion about payment obligations.
- Custom payment plans. Support for flexible patient payment options, such as installment plans, improves affordability and provides steady revenue streams.
- Custom reporting capabilities. Tailored reports that align with the practice’s specific KPIs (e.g., average reimbursement time or denial rates) help optimize financial and operational performance.
The bottom line
As a medical practice, your main goal is to offer your patients the highest-quality treatment, so sometimes billing tasks get put on the back burner. Outsourcing billing and coding to third-party dermatology billing providers can help you in many ways.
Dermatology billing solutions can manage your customer accounts, payment collection, and medical billing. They can also take care of invoice generation and answer patient inquiries on your behalf. Whether you need a remote medical biller or a team of office-based experts, outsourcing is the best choice to maintain a competitive advantage.
Looking for a reliable dermatology billing provider? Let’s connect!
