Ten Things to Avoid When Signing Up With A New Billing Company

Finding the right billing company for your medical practice can be overwhelming, especially with so many options available. While a good billing partner can enhance your practice’s financial performance and take you to the next level, the wrong choice can lead to costly mistakes and in extreme circumstances can even bankrupt your practice. To help you make the best decision, here are ten critical mistakes to avoid when signing up with a new billing company.

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1. Don’t Prioritize Price Over Quality

• Cheap isn’t always better. A low-cost service might seem appealing but could result in errors, poor service, or delayed claims.
• Look at the value. Opt for companies with good track records, even if they’re slightly more expensive.

2. Don’t Ignore Industry Expertise

• Specialized knowledge matters. Some billing companies may not have experience in your specific field (e.g., dermatology, surgery, etc.). This can lead to mistakes or inefficiencies.
• Ensure they know your practice area. Choose a company that understands the nuances of your specialty’s billing codes and regulations.

3. Don’t Overlook Compliance and Security

• HIPAA compliance is non-negotiable. Any medical billing company must strictly adhere to HIPAA regulations to protect patient data.
• Verify security measures. Don’t skip reviewing the company’s data encryption, access control, and breach protocols to safeguard sensitive information.

4. Don’t Choose a Company Without Checking References or Reviews

• Not doing due diligence. Failing to check references, reviews, or testimonials may lead you to a company with a history of poor performance.
• Read reviews carefully. Ask for references and follow up on them, particularly regarding claim processing times, customer service, and accuracy.

5. Don’t Skip an In-Depth Evaluation of Their Technology

• Outdated systems can be problematic. Billing software that’s not up-to-date or incompatible with your systems could cause delays and errors.
• Ensure integration. Choose a company that uses modern, reliable software that integrates well with your practice management system (PMS) and electronic health record (EHR) systems.

6. Don’t Sign Long-Term Contracts Without Flexibility

• Beware of restrictive contracts. Committing to long contracts with limited exit options can be a risk if the service is unsatisfactory.
• Look for flexibility. Ensure the contract has performance clauses, scalability options, and reasonable termination clauses.

7. Don’t Ignore Communication and Support Quality

• Poor communication leads to frustration. If the company doesn’t provide clear, timely communication, it can result in billing delays or issues not being resolved promptly.
• Test customer support. Choose a company with a reputation for responsiveness and ease of access to support teams.

8. Don’t Neglect Transparency in Reporting

• Hidden fees or lack of transparency. Some billing companies may have unclear fee structures or may not provide transparent reporting on their performance.
• Request detailed reporting. Ensure you receive regular, detailed reports on claim statuses, denials, rejections, and payment collections.

9. Don’t Forget About Their Ability to Scale

• Failing to account for growth. If your practice is expanding, ensure the billing company can handle an increase in volume without a drop in quality.
• Assess scalability. Make sure they can handle your growth and the complexity of billing for additional services or locations.

10. Don’t Overlook Credentialing Services

1. Credentialing is crucial. If the company doesn’t offer credentialing services or assistance, you may face delays in payments and issues with insurance providers.
2. Look for full-service providers. Ideally, choose a company that offers or has experience with credentialing to save time and avoid complications.

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The billing company you choose will play a vital role in your practice’s revenue cycle and overall efficiency. Avoiding these ten mistakes will help you make a confident and informed decision. With a reliable partner that offers transparency, expertise, and scalability, you’ll be better equipped to focus on delivering excellent patient care while maintaining financial stability.