The healthcare industry in America is completely based on insurance. Additionally, the cost incurred on your health is paid through insurance plans that cover most of incurring charges. Therefore, medical billing and coding is an important and critical part of health service industry.

1. Advantages of Outsourcing Medical Coding Services
The healthcare industry in America is completely based on insurance. Additionally, the cost
incurred on your health is paid through insurance plans that cover most of incurring
charges. Therefore, medical billing and coding is an important and critical part of health
service industry. The accuracy and reliability in medical billing and coding directly impacts
physician billing, insurance claims, hospital services, and risk assessment for the insurance
industry. Additionally, medical codes are used for further research and educational
purposes. Therefore, its quality cannot be compromised.
Considering the criticality of this job, needless to say, medical billing companies ensure that
standards like CPT, ICD, HCPCS, and so on are valued and followed.
With the increasing need for medical billing and coding, most people in the industry are
looking at outsourcing medical billing. Considering the kind of serious business it is with the
laws and guidelines it has to meet, it is very important to understand the advantages of
outsourcing medical billing and coding. Some of the important advantages that medical
billing companies can look at are as follows:
1. Cost benefits: Cost is an important aspect of benefiting from outsourcing. The
labour costs involved are much cheaper while outsourcing to countries like India and
China. Additionally, the costs involved in running a business including infrastructure
costs, hiring costs, technology updates, and other such costs are not borne by you.
Some reports suggest that outsourcing medical billing and coding can cut costs up to
60%.
2. Meeting standards: There are many standards that are to be followed as part of a
medical billing company. However, the kind of standards that needs to be met are
often a little complicated, and when outsourced, meeting these standards are the
outsourced company’s prerogative. For instance, if your standard is that you require
coders are certified by the AAPC (American Association of Professional Coders), then
you can simply pass on the requirement to the company that you wish to outsource
to.
3. Using specialists: Finding experts and specialists for the coding and billing jobs can
be quiet a grueling task. However, like in the case of maintaining standards, when
the job is outsourced, the company that takes up the work will need to ensure that
the specialists are found and put to work.
4. Quality assurance: The main job of the company that takes up outsourcing is to
provide quality services. This is because their entire focus is on satisfying their
customer. Additionally, quality audits help in ensuring that the coding is more
accurate. Needless to say, the better the quality, the higher the chances of
compensation from insurance.
5. Transparency: Trust and reliance is something that most medical coding companies
work towards. They do this by ensuring that the dealings are transparent, and that
the relationship between the client and the company are maintained and improved.

2. 6. Accuracy: The fact that specialists are involved in the entire process, automatically
assures accuracy. When outsourcing, expertise can be fully utilized to ensure that
accurate information is provided and recorded. Accuracy is again an important thing
to attain because most of the outcome of a claim does largely depends on its
accuracy in the eyes of the insurance company.