- May 10, 2022
- Posted by: Steve Smith
- Categories: DME Billing, DME Billing Services
Why is DME Billing so Costly?
The answer to the question above applies to more areas than just DME billing. Employing experienced and skilled billers and coders has never been an economical choice. Large practices may find it worthwhile but for smaller ones, the cost far surpasses the benefit.
According to the data published by U.S. Bureau of Labor Statistics, the mean hourly wage of a medical biller (designated as ‘billing and posting clerk’ in the report) is $20.55. Based on this, the mean annual wage of such a biller is $42,750. Add to this the cost for hiring office space and equipment, and it is plain to see why many providers find appointing and maintaining an in-house staff of medical billers so very expensive.
The current inflation sweeping across the nation has made matter only worse in recent times. The pandemic has also caused a shortage of skilled personnel in the market. Many, who had been earlier engaged in medical billing, have changed their profession since the onset of the pandemic. Even if you are able to find a skilled biller, be sure that the recruit will come at a premium.
How to Reduce DME Billing Cost?
The simple answer is strategic outsourcing. There are many DME billing companies that operate from ‘inexpensive’ offshore locations and yet are licensed to assist healthcare providers in the US in managing their entire revenue cycle. Of course, billing & coding forms a major part of their services. The real benefit of engaging such a billing partner lies in the immediate cost advantage that the provider stands to enjoy. The hourly rate is usually between $7 and $10, and that is all that one needs to pay. No more worries about any extra expenses such as overhead, employee benefits or hiring of office space.
DME billing can be a complex affair. It requires updated knowledge of medical codes, claim submission protocols and everything else in fine print that payors require. This poses a unique challenge to many providers who constantly need to worry about training their billing personnel to keep them abreast of the latest norms and regulations. With outsourced resources, such worries can be put to an absolute rest. Third-party billing agencies provide fully trained personnel, ready to take on all your billing tasks, at a highly competitive price. The outcome also is improved, with increased collections and a reduced rate of denials or failures.