According to The Outsourcing Institute, 60% of companies with fewer than 500 employees expect to spend $1 million to $5 million on outsourcing in 2003. Another 20% of companies have budgeted up to $1 million for outsourcing.
Outsourcing is a key enabler for small to medium sized companies because it offers economies of scale, which results in more predictable costs, shared or reduced risk, as well as access to expertise and infrastructure small business typically cannot afford.
The Outsourcing Institute sees the best functions to outsource as a company’s non-specialty areas that consume significant time and energy, such as tech support, payroll/human resources, financial/legal services and staff training. It recommends the following formula to determine if outsourcing is cost justified: annual salary + commission + bonuses + benefits all divided by 2,080 (the average number of working hours in a year.) If the costs associated with outsourcing exceed your total, it’s not cost effective.
The bottom line, business owners enjoy a more efficient business by outsourcing tasks in order to concentrate on their core goals and objectives.
Excerpt from “Taking It Outside”
Why should I outsource to IHM?
- Improve Collections: IHM’s highly skilled experienced staff of medical billers and coders will work your Accounts Receivable daily to insure that denied and unprocessed claims are corrected and resubmitted for processing, reducing untimely denials.
- Get Paid Faster: IHM will code and enter daily charges while inspecting all coding for accuracy. Clean claims go out correctly the first time reducing denials and EDI rejections.
- Keep More of what you earn: Outsourcing your medical billing functions allows you to reduce your human resources expenses (salary, payroll taxes and workman’s compensation and health insurance) and saves time and money on in-office management of billing staff.
- Compliance: Let IHM track billing and human resource updates to ensure that your practice is compliant with all local, state and federal regulations.
