Not only medical billing, but outsourcing has also become a fundamental part of operating a business. Organizations consider outsourcing as a way to maximize revenue and promote financial stability.
Previously, healthcare providers chose between in-house medical billing and outsourced medical billing services. Now, when most healthcare providers prefer outsourcing, the hassle lies in selecting between onshore and offshore outsourcing.
Both onshore medical billing and offshore medical billing have their unique advantages. Whatever choice healthcare providers make, it will significantly impact administrative efficiency. Therefore, healthcare providers must make informed decisions and choose the best for their requirements.
In this blog, we will compare onshore medical billing with offshore medical billing. By the end, healthcare providers will have a clear idea, fostering informed decision-making.
Let’s start by understanding the basics of these types of medical billing services!
Onshore vs. Offshore: Understanding the Basics
Onshore vs. offshore, the debate is all about the time zones. Both onshore and offshore provide medical billing services. The only difference is their place of operation.
Onshore
When medical billing services operate domestically within reach of healthcare providers and practices, it is known as onshore medical billing. Simple terms: when the healthcare provider and its medical billing company are in the same country.
For Illustration,
A general care practice located in Canada chooses onshore medical billing services. The medical billing team can perform the administrative process without any delays. It can also quickly communicate with the insurance provider and sort out issues, if any.
Offshore
Offshore medical billing is the opposite of onshore medical billing. When healthcare providers and practices outsource medical billing services situated in another country. Choosing this mode can be more cost-effective, as operational costs are lower in some countries.
For Illustration,
A medical practice outsources medical billing services to a company located in India or the Philippines. Offshore outsourcing partners can handle loads of claims and ensure timely revenue collections.
Employing an onshore medical billing partner offers better availability, whereas an offshore medical billing partner can be more cost-effective. This is not the only advantage of these two.
Let’s learn about their benefits and demerits!
Benefits of Onshore Medical Billing
One of the best advantages of onshore medical billing is being in the same time zone. This helps in some other things, such as ease in understanding the legal requirements, rules, and policies. Another great benefit is a reduced language barrier and better exchange of information.
Here is the list of benefits of onshore medical billing:
Better Communication
Availability of medical billing services within the same country improves communication. It happens because of similarities such as language and culture. As a result, there are limited communication barriers and better cooperation, resulting in improved administrative processes.
Adherence to Compliance
Onshore medical billing partners are familiar with the local regulatory requirements. This enhances the adherence to rules and policies such as HIPAA. Meeting such standards effectively is beneficial for healthcare providers and practices.
Quality Control
Such medical billing companies offer high-quality control due to greater clarity of the local laws and operational flow. Domestic medical billing services can recognize growth contributors and improve the overall process.
Patient Trust
Domestic medical billing services can also make patients more comfortable due to the factor of familiarity. It can uplift patient trust about the safety of their sensitive information. Patients feel more relieved about ethical administrative practices and security.
Demerits of Onshore Medical Billing
Greater Expenses
Onshore medical billing services may require more investment as labor costs are higher. It can elevate the operational cost, enhancing resistance towards onshore services. The cost factor can influence healthcare providers to choose offshore services.
Increased Execution Timeframe
On the one hand, there is a higher onboarding cost, and then there is increasing competition among skilled medical billers. These two factors can enhance the execution timeframe. This is not a concern with offshore services.
Inflexible Scalability
Onshore medical billing may be more convenient, but achieving scalability is still a challenge for healthcare providers. This is because of challenges like the increasing number of patients and higher medical billing costs. This hampers the scalability of healthcare providers and practices.
Geographical Limitations
Even though domestic availability is the most valuable part of onshore services, geographical location can also be a limitation. It happens when the medical billing partner you want does not offer services in your respective state.
Benefits of Offshore Medical Billing
As we have discussed, onshore medical billing, it's time for offshore medical billing. One by one, we will go through its benefits and demerits.
Here are some benefits of offshore medical billing services:
Cost Efficiency
One of the best benefits that an offshore medical billing company offers is cost efficiency. Usually, the labor cost is lower, resulting in reduced operational expenses. This is also because of the greater margin difference in currency rates benefiting the US market.
Skillful Workforce
Healthcare providers and practices can access skilled medical billers and coders to handle their complex administrative process. Offshore services provide highly skilled professionals, resulting in maximum revenue and operational efficiency.
Round the Clock Services
Due to the difference in time zones, healthcare providers and practices in the USA can get 24/7 medical billing assistance. This streamlines the medical billing process for good and better overall administrative performance.
Flexible Scalability
Scalability is not an issue with offshore medical billing services, as they can be adjusted based on the needs of the healthcare providers and practices. There is more flexibility in the allocation of resources and better improvement in RCM.
HIPAA Compliance
Offshore medical billing services are keen to maintain a reliable reputation among their clients. For this, they stay updated with regulatory standards and adhere to compliance requirements such as HIPAA. It helps them safeguard sensitive patient information from unauthorized use.
Demerits of Offshore Medical Billing
Quality Challenges
Quality can be a concern with offshore services. The uncertainty of whether your offshore medical billing partner will fulfill all requirements or not. As they locate in a faraway place, healthcare providers or practices can lose control.
Difficulties in Communication
Communication can be another big disadvantage for offshore service providers. The time zone differences, language barriers, and limited understanding of the working culture can be the reasons behind the ineffective medical billing process.
Data Privacy Risks
Forming trust with an offshore billing partner can be a challenge for healthcare providers and patients. Data privacy and meeting compliance requirements are the biggest concerns of healthcare providers.
More Billing Dependency
Outsourcing to offshore medical billing providers enhances the dependency of healthcare providers. They must rely on the external medical billing partner for every detail. In case there is a lack of communication, it can disrupt the entire revenue cycle management.
Final Thoughts
Onshore vs. offshore, deciding what’s best for your healthcare practice can be hard. As we analyze the above-mentioned benefits and demerits, we get to know that both have some good points and some bad.
Knowing that onshore and offshore have some good things to offer, deciding which one to choose can be even more complex. So, what is the solution to this?
The answer is finding a middle ground and opting for medical billing services that can offer the best of both onshore medical billing and offshore medical billing.
Eminence RCM is one such medical billing service provider that offers offshore medical billing services together with onshore assistance. We work with a professional team of coders and billers who devote their time to eliminating errors and denials. Our team is proficient in keeping up with the latest regulatory guidelines. We maintain complete adherence to HIPAA and protect sensitive patient information from misuse.
At Eminence RCM, we work to elevate your revenue cycle and improve your operational management. Partner with us to maximize your reimbursement and achieve a robust bottom line!