secure mso revenue cycle management medical billing services

In House vs Outsourced Medical Billing Services: Making the right choice for your practices

In House vs Outsourced Medical Billing Services: Making the right choice for your practices


In house and outsourced medical billing services are adopted to capture medical industry power and create the ability to enhance medical billing efficiency and revenue cycle management. It is a concern in deciding between in-house and outsourcing medical billing services. It is a diversification strategy used to determine the autonomy of healthcare business units. It is adopted when there is a high gap between the service cost, service efficiency, and maintenance of accuracy. Medical billing outsourcing or in-house services are highly unpredictable, and the company needs more sources to establish the environmental gap. In such a situation, various factors become necessary to consider the execution of business operations. Outsourcing or in-house of medical billing services becomes possible when it helps to reduce the cost overhead, increase billing efficiency and provide assistance in regular processes. The article will discuss the significant differences between in-house and outsourced medical billing and analyze both to make an accurate choice for healthcare providers.

In House Medical Billing Services

If you do your medical billing in house, you can exercise direct control and oversight over the financial processes. You can easily walk down the hall to ask your staff questions and receive real-time answers. Additionally, you can implement any billing changes instantaneously. Lets discuss some pros and cons of in house medical billing services.


In this section of our blog we will try to discuss some main pros of in house medical billing services.

Strict control

Medical billing services are efficiently managed by healthcare professionals who rely on the expertise and loyalty of their experienced staff. These trusted employees possess the necessary skills and knowledge to handle the complex processes involved in medical billing services, ensuring accuracy and timeliness in the financial management of healthcare services. With their hands-on control, healthcare professionals can focus on delivering quality care to their patients while their dedicated team manages the administrative tasks that keep their practice running smoothly.

Return on Investment (ROI)

Employer investment and effort in recruiting the right employee for the organization help ensure the generation of multiple benefits. These benefits included workplace benefits, remuneration, employee satisfaction, and offer training for meeting the future demand for skills. Outsource might result in the form of waste of money and time. Under such conditions, it is better to refine the existing conditions to get the best ROI.


One of the most advantageous aspects of implementing an in-house billing system is the ability to closely monitor and efficiently manage all billing processes. This includes the ability to quickly identify and address any issues that may arise within the office, such as discrepancies or errors in billing. Additionally, having an in-house medical billing services enables greater control and customization of medical billing procedures, allowing for tailored solutions to meet the unique needs of the business. Overall, the benefits of an in-house billing system cannot be overstated, as it can significantly streamline the medical billing process and improve overall efficiency within the office.


We have discussed some pros of in house medical billing services. Now let’s discuss some cons of in house medical billing services.

High cost

When it comes to managing the medical billing services, there are many costs to consider. Training, development, infrastructure, technology, and system updates are just a few of the expenses that can quickly add up. While some healthcare providers may choose to handle these tasks in-house, it is often more expensive to do so. Outsourcing medical billing services to a third party provider can help to reduce costs while still ensuring that your business is receiving high-quality support. By working with a reliable and experienced partner like Secure MSO, you can free up internal resources and focus on growing your business.


It is imperative for medical managers to exercise a high degree of caution when it comes to monitoring billing operations. This is due to the prevalence of fraudulent activities, such as up billing, unbundling, and claim denials, that can occur within the medical billing department. In order to ensure the integrity of the billing process, a stringent level of vigilance must be maintained at all times. By remaining diligent in their oversight, medical managers can effectively prevent these types of fraudulent activities from taking place.

Support issue

In-house billing requires the consistent presence of in-house employees to ensure the cash flow and billing operations. Otherwise, the operation may be stalled in the absence of even just one employee.

Outsource Medical Billing Services


The recruitment of workers that are well-matched with the role of business benefits in the form of more productive workers and accelerates the profitability of the business. Outsource medical billing is beneficial because

  • It offers security and compliance with billing guidelines due to the presence of billing experts.
  • Outsourced medical billing services has introduced different methods to get security copyrights.
  • It improved itself continuously and has brought lots of improvement in the business.
  • Outsourcing has the potential to tackle the medical billing services of businesses without hiring in-house dozen of workers.
  • Outsourced medical billing experts and companies have set their names in medical billing, coding, and efficient revenue cycle management.
  • Outsource medical billing companies ensure the security of billing services and reduce the risk of medical claim denial.
  • Outsourcing medical billing company helps to lower management load.
  • Consistent improvement, updates, variability, and compliance with security guidelines made outsourcing an ideal choice for medical billing.

However, some drawbacks of outsourcing require to consider before making the final decision.


Less oversight

When deciding to outsource medical billing services, it is important to consider the level of control and insight you will have into the management and processing of insurance claims. While delegating this responsibility to a competent third party can be beneficial for some physicians, others may prefer to maintain a hands-on approach. It is important to note that outsourcing may require scheduling phone calls for any billing queries, rather than being able to simply walk down the hall for immediate assistance. Ultimately, the decision to outsource medical billing services should be based on individual needs and preferences.

Communication to Patients

In the event that a separate entity handles your medical billing services, it is possible that you will not have instantaneous access to patient billing records. Consequently, if a patient inquires about their insurance or billing, you may not be able to provide a prompt response. To prevent any potential frustration on the part of the patient, it is crucial to establish a clear communication protocol with your medical billing service provider. By doing so, you can ensure that you have a comprehensive plan in place to address any issues that may arise concerning patient billing and insurance matters.

5 Reasons to Outsource Medical Billing

In today’s world, it’s a wise choice for medical practices to outsource their medical billing services needs to third party companies. These companies possess the necessary skills to maximize your medical practice’s revenue. They work on your behalf, fighting for every penny you’re entitled to against insurance companies for each claim.

Medical coding is their forte, and they can inform you about services you may not even be aware of or should be claiming. While having an in-house medical billing team has its advantages, if they are managing other administrative tasks, it’s unlikely that they have enough time and energy to effectively negotiate claims, code services accurately, follow up on unpaid claims, and keep up with changing medical codes and insurance requirements.

You will make more money. 

Healthcare practices have experienced a significant increase in total revenue, ranging from 10% to 30%, during the first year after outsourcing their medical billing services. This is because of the expertise of the medical biller in optimizing revenue for the practice by efficiently utilizing the medical coding system. Additionally, in cases where a claim is denied or remains unpaid, the billing company will work tirelessly to ensure that the services rendered are appropriately compensated.

It will free up internal resources.

In smaller medical practices, it’s common for family members or friends to handle medical billing services. However, staying up-to-date with the latest coding requirements and industry changes requires a lot of time and training. To relieve your staff from this burden, consider outsourcing your medical billing services so they can focus on other important administrative tasks.

You don’t have to stress about it. 

By outsourcing medical billing, you can entrust the complex responsibility to a reliable and knowledgeable source. You will no longer have to deal with inquiries or worries about insurance claims, and you can be confident that you will receive payment for your services at the best rate. Medical billers are skilled at handling insurance claims and managing intricate finances as part of their profession. You can have peace of mind knowing that your revenue is being managed by capable hands.

They are highly motivated to increase your revenue. 

As previously mentioned, partnering with an outsourced medical billing company who receives a percentage of the payment for each service is a financially beneficial arrangement for both parties. The more revenue the biller can generate for you, the greater the financial rewards for both of you. In contrast, an in-house biller who is paid on an hourly or salaried basis may lack the motivation to secure the best possible rate for you. As a result, most in-house billing claims are accepted at the insurance rate without any attempt to negotiate. This is often due to a lack of time or expertise on the part of the staff.

They are experts in their field. 

The team of Secure MSO billers are the best in the business and have extensive training in handling the specific codes and services within your specialty. They provide you with all the financial options available for a surgical procedure, and give you a comprehensive fee structure for each one, so you can easily choose the best fit for your practice. Moreover, our experts work with numerous practices in your field and are adept at finding innovative ways to code services to maximize your earnings. These “work-arounds” are essential in dealing with insurance companies that are denying more claims. You deserve to be paid for your services, and our team is dedicated to ensuring that. Let us take care of the billing while you focus on providing top-notch care to your patients.


In the healthcare industry, the patients are large in volume, and the demand for medical billing is enormous, ensuring profitability is evident. Although several industries are rushing to the healthcare sector, the situation is more complex than it seems. Only the companies succeeded in effectively managing their revenue cycle to become a leader in the healthcare industry. Despite the valuable benefits of in-house medical billing practices in the medical industry, outsourcing medical billing demand is a hike. However, external factors like currency rate fluctuation and legal and environmental issues could affect medical billing outsourcing in its alignment with the global market. Instead of relying upon in-house medical billing services, healthcare providers should outsource from highly renowned and experienced outsource medical billing service providers. However, knowing what to outsource is the primary key required. For instance, healthcare providers can outsource from experts in financial resource management, consulting, monitoring, and medical claims processing.


What is in house medical billing services?

It allows strict control over the accounts of patients. Upfront expenses included technology costs, billing and training software, labor costs, maintenance, and depreciation costs required to maintain the billing system. Furthermore, changes and updates to billing software could be costly and complicated.

Differentiate between the in-house and outsourced medical billing services?

In-house medical billing service is a practice of generating medical bills through in-house resources. It offers more control over the resources and daily medical operations. While outsourcing medical billing services is hiring contractors or companies providing medical billing services. The outsourcing company uses its resources to provide medical billing services to healthcare organizations or professionals.

What is preferable to outsource medical billing operations from outside or in-house?

It varies from the medical practices or doctors. However, the preference for in-house or outsourcing may differ from one practice to practice. Factors like business size, labor market size, business age, finance, and other considerations are required to answer accurately. Revenue cycle management and billing are the two essential pillars of medical practice. That is why their handling shouldn’t be taken lightly. For making a sensible and accurate decision, a thorough assessment of practice cost, volume metrics, and staffing cost are crucial to determining which could be the right choice for your business practice.

How outsource medical billing services help to save the cost?

Employees are the assets of the organization. Despite organizations’ high focus on staff training and development, employee performance issues still need to be addressed in the business. It causes a firm to gradually decrease its profitability in the market due to the high financial cost. It also has a drastic effect on the organization’s goodwill and sustainability. In addition to it, lack of freedom for the worker and stress also leads to sickness, chronic psychological and physical disorders, and an increase in the turnover rate. Outsourcing medical billing service allow healthcare providers to get benefits from industry experts without the overhead of bearing the cost of system maintenance, infrastructure, and employee training and development.

Which option should we choose for acquiring long-term cost-effectiveness?

In-house and outsourced medical billing services are linked with the cost. However, in-house requires considerable infrastructure, technology, and employee training investments, while outsourcing companies offer all their services against the contract fee. That is why your growth projection should be your focal point before making a final choice.

For Invaluable Insights and Daily Updates, Follow Us on LinkedIn or join us on Quora.

Secure MSO Revenue Cycle Management

Oh hi there
It’s nice to meet you.

Sign up to receive the latest updates, insights, and exciting news in your inbox, every month.

We don’t spam! Read our privacy policy for more info.

Secure MSO Revenue Cycle Management

Oh hi there
It’s nice to meet you.

Sign up to receive the latest updates, insights, and exciting news in your inbox, every month.

We don’t spam! Read our privacy policy for more info.