THINK OF ALL the ways today’s dentists are, in many respects, living the future: virtual patient-practitioner sessions, hard- and soft-tissue lasers, 3D treatment planning, reduced chair time thanks to implant-depth and angulation planning software. Still ahead lie the use of 3D printing and stem cells for tooth replacement, and true democratization of dentistry via smartphone.
Embracing the future administratively as well as clinically is no less crucial. PPO fee schedules regulate what 85 percent of offices charge, and clinical advances aren’t cheap. Outsourcing tasks such as bookkeeping, accounts payable and billing generally proves more reliable and cost-effective. Things that were once commonly done in-house—payroll, for example—seldom are today. The companies that handle them both educate practice owners on new developments and regulations and remove onerous compliance burdens.
In today’s fast-paced and complex dental landscape, managing administrative tasks can be a significant burden for dental professionals. From insurance claims and patient scheduling to billing and marketing, these tasks can consume valuable time and resources that could be better spent focusing on patient care. Many dentists are considering outsourcing these administrative functions to third-party companies. However, the decision of whether to enlist a third party is not without its pros and cons.
Benefits of Outsourcing Administrative Tasks
Why should you consider outsourcing? For these reasons.
- INCREASED PEACE OF MIND. When someone else handles the time- consuming headaches, practice owners can actually look forward to the month-end numbers. If others are focusing on your accounts every day, problems such as charge-entry errors and reimbursement disputes can be identified early, before they spiral out of control.
- QUICKER PAYMENTS. Cash flow is key. The number of days unpaid accounts and claims are outstanding has a major impact on your bottom line. Outsourcing your billing means faster submissions with fewer errors, speeding up the process to the fullest extent.
- ECONOMIES OF SCALE. Outsourcing companies (the Indiana-based Insurance Billing Outsourcing, which I founded, is a prominent one) distribute expenses across their entire client base, meaning less-pricey services overall.
- HIGHLY TRAINED SPECIALISTS. The sole purpose of an outsourcing company is to increase your practice’s profitability. Specialists therefore review and post all payments, ensuring that carriers are paying the correct amount and preventing incorrect adjustments. Every outstanding claim is tracked until fully paid.
- ALWAYS-CURRENT KNOWLEDGE. Keeping up with insurance rules and requirements means constant learning and steady vigilance. It’s difficult, and most practices don’t have the time. So, let someone else worry about it.
- INCREASED FOCUS ON PATIENTS. Handling accounts in-house consumes both time and money. Even if you personally aren’t the one spending 15 minutes or more to follow up on an individual claim, you can’t escape the attendant management headaches. If you outsource, you’ll free up valuable hours, maintain your patient volume and potentially increase revenue—all at once.
Most practitioners who use billing services see a revenue increase and cost decrease that far outweigh the third-party service fee. You can modernize your equipment, but if you aren’t modernizing your administrative side, you’re limiting your own success. And as any clinician can tell you, it’s all but impossible to practice dentistry with one hand tied behind your back.
Potential Challenges of Outsourcing
While outsourcing administrative tasks can offer significant benefits, it is not without its potential challenges:
- Loss of Control: Outsourcing can result in a loss of control over certain administrative functions. Dentists may need to rely on third-party companies to ensure that tasks are completed accurately and efficiently.
- Communication Issues: Effective communication is essential when working with a third-party company. Misunderstandings or delays in communication can lead to problems and inefficiencies.
- Data Security Concerns: Outsourcing involves sharing sensitive patient data with a third-party company. It is essential to ensure that the company has adequate security measures in place to protect this data.
- Cost Considerations: While outsourcing can be cost-effective, it is important to carefully evaluate the costs involved, including fees, contracts, and potential penalties.
- Vendor Management: Managing relationships with third-party vendors can be time-consuming and require careful attention. Dentists may need to invest time and resources in vendor selection, oversight, and evaluation.
Conclusion
The decision of whether to outsource administrative tasks is a complex one that requires careful consideration. By weighing the potential benefits and challenges, dental professionals can make an informed decision that best meets the needs of their practice and patients.
Additional Considerations
- Hybrid Approach: Consider a hybrid approach where some administrative tasks are outsourced while others are handled in-house. This can provide flexibility and help mitigate some of the risks associated with outsourcing.
- Due Diligence: When selecting a third-party company, conduct thorough due diligence to ensure that they have a good reputation, experience in the dental industry, and a strong track record of performance.
- Contract Negotiation: Carefully negotiate contracts with third-party companies to ensure that your practice is protected and that the terms of the agreement are fair and reasonable.
By carefully considering these factors and conducting thorough research, dental professionals can make an informed decision about whether to outsource administrative tasks and improve the efficiency and profitability of their practices.
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