Kareo's Medical Billing Industry Report Highlights Bullish Outlook by Medical Billing Companies
Medical Billing Companies Expect to Grow an Average of 12% in 2019 as They Increase Their Medical Specialization and Consultative Role in Compliance and Technology
IRVINE, Calif., Feb. 11, 2019 /PRNewswire/ -- A nationwide survey conducted by Kareo reveals that medical billing companies expect an average revenue growth of 12% during 2019 as utilization of outsourced billing by independent medical practices continues to increase. Nearly one-third (28%) of physicians and medical practitioners who do not currently outsource medical billing indicated that they plan to do so over the next two years1. Kareo's research also uncovered how billing companies are delivering additional value to their medical practice clients through consultative services in the areas of compliance and technology adoption and leverage, as well as practice marketing. Kareo is the leading provider of cloud-based clinical and business management software for independent medical practices and billing companies. The Kareo Medical Billing Industry Report is available for download here.
"The challenges of running a successful medical practice in today's dynamic healthcare landscape continue to impact the time providers have to dedicate to patient care. These practices are turning to their medical billing companies, not only for efficiency and expertise in collecting from insurance payers and patients, but also for their insights into overall practice operations, technology adoption, and compliance," said Rob Pickell, Chief Marketing Officer, Kareo. "Our new report highlights the optimism medical billing companies have around their prospects for 2019 and into the future."
The survey highlights that extensive revenue cycle expertise at the specialty level is a successful strategy for building a billing company to scale. Forty-seven percent of small billing companies specialize in order to differentiate themselves, while 58% of medium-sized businesses do. As might be expected, large billing companies tend to diversify across a wider range of medical specialties, responding to the rapid growth (11% since 2012) in multi-specialty medical practices.
The significant increase in high deductible insurance plans – the average deductible for employer-based plans reached $1,500 in 20182 and the average deductible for individual Affordable Care Act (ACA) Bronze plans was more than $5,800 in 20183 – is driving the need for billing companies to become specialists in patient collections. Of those surveyed, patient balances account for an average of 23% of total collections. Billing companies that have traditionally charged a lower rate for patient collections now have the opportunity to align their fees with the changing reality of their work models.
Billing companies are also expanding into new service areas such as technology, regulatory compliance, and patient acquisition to open new revenue paths. Figure 1 shows areas of significant opportunities for growth in value-added services. Helping medical practices implement and leverage technology is something that 75% of billing companies report doing today, with the adoption of integrated EHR and billing software the top area of focus. This focus reflects the recognition by medical practices of the potential for technology to improve practice efficiency and profitability, coupled with the need for guidance and support in avoiding costly technology adoption mistakes. Further, as practices continue to improve their capabilities at non-clinical patient engagement, they see the potential in leveraging billing companies for patient support and communications.
To see complete results of Kareo's first Medical Billing Industry Report and survey, download a copy today.
About Kareo
Kareo is the only cloud-based and complete medical technology platform purpose-built to meet the unique needs of independent practices and billing companies. Today Kareo helps over 1,600 billing companies and 50,000 providers across all 50 states run a more efficient and profitable business, while setting them up to deliver outstanding patient care. Kareo has received extensive industry recognition, including the Deloitte Technology Fast 500, Inc. 5000, and Black Book's #1 Integrated EHR, Practice Management and Medical Billing vendor, as well as ranking at the top of the Leader Quadrant in the FrontRunners Software Analysis of EHR. Kareo's growth further demonstrates the expansion and vitality of the independent practice market in the U.S. With offices across the country, Kareo's mission is to help independent practices – and the billing companies that support them – succeed in an ever-changing healthcare market. More information can be found at www.kareo.com.
1 Derived from an auxiliary survey
2 https://www.benefitnews.com/news/average-healthcare-deductible-hits-nearly-1-500
3 https://www.healthpocket.com/healthcare-research/infostat/2018-obamacare-premiums-deductibles#.XBF_mC2ZPAx
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