In order to cut costs, the North Carolina State prison system is considering looking to private vendors to manage the inmates' medical care. This tall order covers everything: the hospitals, the dentists, pharmacies and mental health - not just medical billing.
According to an article in the Charlotte Observer, the North Carolina Department of Correction is seeking a large-scale company who has the means of committing to a 5-year contract. They are currently accepting proposals and requires a $100 million performance bond.
Outsourcing medical billing to a private company could be advantageous to to the state's prison system (and your own practice as well) because it's more cost effective than having in-house billing. Costs are streamlined into one service plan based on how much or how little the practice makes. As experts in just billing, private outside companies are likely to increase practice revenue through precise and accurate diagnosis and treatment code data entry that leads to fewer insurance denials. Outsourcing also allows the practice to keep the focus on the patient, rather than worrying about in-house billing software malfunctions, scheduling training and service maintenance and support fees.
How do you feel about medical billing outsourcing? Friend or foe?