In House Billing vs Outsourcing your Medical Billing






One of the most crucial and sophisticated components in healthcare provision relates to medical billing. Without a well-streamlined billing system, there is a high probability for recurrence of expenses which hinders the growth of the healthcare sector in general. In the 21st century, physicians also do struggle on deciding the best medical billing outsourcing. Medical billing has lately been an important topic, especially as a result of the technological innovations that are witnessed and also due to changes in government rules of the healthcare sector. Before choosing the best Medical billing, one has to make an informed comparison between the in-house billing and the medical billing outsourcing cost. Thus, it is critical for an individual to fully understand both medical billing outsourcing and in-house medical billing.

Factors that Determine the Right Billing System

  • The size of your clinical staff
  • The financial muscle of the organization
  • The duration the business has been in operation
  • Number of patients in a daily routine

In-House Vs. Outsourced Medical Billing Service


To set up an in-house medical billing as the physician or the organization, you required to hire professional or experts to manage the entire billing system, including coding. On the other hand, instead of setting your billing system, you can use the service of a third-party agency.

When choosing between the two, you need to consider the costs incurred on both. Example of cost to consider is in the billing department, software, and hardware, collection, and even on direct claim processing.


In-House Medical Billing



  • Better control of all medical financial operations
  • It is cheaper and convenient compared to outsourced solutions which are costly and time-consuming.
  • It is easier to monitor how the system is working and take necessary measures in case there is something that arises


  • The cost of running an In-House medical billing may be high based on all expenses  required
  • The liabilities may be high especially if there is poor management of the system
  • High requirements for support services as you need billers and coders who are expert in that field.
  • All employees have to be trained on the various medical coding regulations that exist, or that may come up with time.

Outsourced Medical Billing


Medical billing outsourcing comes with many benefits and at the same time has several challenges as discussed below:



  • Outsourcing is less expensive as you do not incur any costs in setting up your billing system
  • Most outsourced firms are a profession and thus transparent
  • There is consistency in the performance of services
  • When there is outsourcing, energy and focus can be directed to patient care
  • The probability of billing errors is reduced
  • Possibility for improved cash flow
  • With outsourcing, billing compliance is guaranteed
  • There is an option for scaling up


  • Limited control of billing operations as a third party handles them
  • The medical billing cost vary from time to time which may translate to high charges



In considering between In-House and Outsourced Medical Billing Service, it is vital to have some knowledge of coding and billing procedures.  In-house billing is the best option in case you have a well set up center for billing, for accounts receivable and a back office. You will also require experts and equipment.  Even though you pay extra charges for the outsourced billing system, there are more collections compared to the in-house billing model.  You have also eased up staffing as another party cares all billing needs. 

Outsourcing billing is advantageous in that it is cost-effective, and there are professionalism and consistency in the invoice. Cash flow is guaranteed for you if you have an effective and efficient billing system. Review our client case studies to see how MPM increased revenue while reducing the Accounts Receivable.


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Pros and Cons of Outsourcing Medical billing

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