Some therapists have chosen to be their own billing person. It is tempting since so many of us own computers these days. The thinking is "I'll just buy some software...and do it myself." Although this solution is potentially cost-saving, there are two major concerns:

1. Therapists are not detail-oriented people. So, the billing process is usually time-consuming and not very effective. It is easy to shoot yourself in the foot.

2. The time could be better spent developing referral sources and doing other promotional activities. Doing your own billing is not the way to build a successful practice.

In summary, for the individual practitioner, a billing service is a simple and cost-effective solution for a complex problem. It enables the therapist to give full attention to building a successful practice.

It is hard for small practices to resist the temptation to do in-house billing. The thinking goes like this: "Why don't we hire a support person...to answer the phone, greet out clients...and do our billing?" In truth, it's not a bad idea. It's just very hard to accomplish.

It can be very difficult for small practices to recruit and retain qualified billing specialists. First of all, skilled billing people naturally expect to be paid better than clerical staff. Secondly, they tend to like full-time jobs. So, the small practice has two choices:

Hire a clerical person...and teach her to do the billing

You've read the ads about how easy insurance billing can be...with XXX software. So, you think "I'll just hire a clerical person...buy the software...and we'll be in business. Great solution!"

Too often, this is a terrible solution. First of all, it takes time and money to get a person trained.

• During training sessions, you have to pay the trainer and the trainee...not to mention workshop fees, books, and so on.
• There are ongoing costs for supervision...until the person is completely trained.

During this time...and it could go on for many months (even years)...you will have to protect your practice from billing mistakes...inadequate followup...and disorganization. Your client fees will be at stake.

Finally, if you are successful in transforming a clerical personal into a billing dynamo, it'll be great...for about 5 minutes. Then one of two things will usually happen...she will want a raise...or she will sell her new-founded skills to another employer.

In summary, the idea of teaching a clerical person to do the billing sounds great. In practice, it's not that simple.

Hire a billing specialist...and use her for clerical jobs

This is a more "honest" way of looking at in-house billing. At least, you're not fooling yourself about what the costs will be. These are the obstacles that small practices face:

• You will be competing with larger practices for this billing specialist. If you don't offer a competitive salary, you will end up with someone that is marginally qualified...and that would put your client fees at risk.
• If you do offer a competitive salary, your in-house billing costs could exceed billing service fees.

For these reasons, a billing service remains a viable option...even for small practices. All too often, doing in-house billing is a false economy. A billing service, especially Summit-Edge, offers the advantage of safety, consistency and reasonable costs...allowing the small practice to focus on clinical and marketing issues.

 

Copyright 2003, Summit-Edge, Inc.