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How Physical Therapy Billing Improves Business Operations 2 people consulation with healthcare therapist in clinic

The article aims to illustrate how Physical Therapy Billing Outsourcing improves business operations.

For healthcare practice owners such as those specializing in physical therapy, managing daily transactions can be quite a challenging task, especially if they do not have enough specialized inhouse staff, resources or time available to carry these all out. Because of this, practices look for opportunities that improve current processes, resulting in better productivity, reduced cycle time, improved accuracy and scalability, so they can instead make caring for their patients their priority.

How Physical Therapy Billing Outsourcing Improves Business Operations

Outsourcing physical therapy services is a practical option to meet all the above objectives.

Physical Therapy Billing Outsourcing: What is it?

Physical therapy billing is one function in a physical therapy practice, or for any specialized healthcare practice, that is highly transactional.

Physical therapy billing outsourcing is the process of hiring a third-party billing company to manage billing and coding services for a physical therapy practice.

The billing process which falls under the revenue cycle management cycle, includes submitting claims, and following up with insurance companies to ensure payment is received in a timely manner. Physical therapy practices have the option to either outsource collections or to outsourcing the entire revenue process. These functions are, in fact, some of the most common administrative functions in the healthcare industry that can be heavily outsourced.

Outsourcing physical therapy billing services can bring several benefits to a practice and its patients. The following blog post will highlight how outsourcing physical therapy billing improves the business.

Why should I outsource physical therapy billing services?

The approach of outsourcing your physical therapy billing function can help save time, money, and help you improve the operations of your practice.

 Outsourcing physical therapy billing can lead to more efficient and effective billing practices, resulting in increased revenue for the practice. Outsourced Physical Therapy billers can improve operations by making sure that all claims for physical therapy services are accurately processed and payments are paid for by insurance companies.

Outsourced Physical Therapy billers possess strong organizational skills and communicate effectively with patients when it comes to verifying their insurance coverage managing patient accounts, verifying patient eligibility, and answering patient billing questions. Aside from this, they also deal with healthcare providers, and insurance companies to resolve any billing issues or appeals.

Outsourced staff are highly qualified and are proficient in medical billing coding systems insurance regulations, and healthcare payment posting systems. 

Focus on Patient Care and Satisfaction

According to Equifax, a credit agency firm, the average hospital bill over $10,000 has $1,300 in error. Also, poor billing practices cause doctors in the US to lose an estimated $125 billion each year.

Processing billing and collections is time-consuming and high in demand. Outsourcing this function can reduce errors, free up the time and effort of healthcare practice staff to instead focus on clinical work and patient care and satisfaction. The accuracy of claim payment processing, reduction of denials and corresponding billing inquiries, and improved percentage of claims paid when outsourcing billing and collections ultimately increases patient satisfaction.

Lastly, in healthcare, there are state and federal compliance requirements that healthcare practices must meet, such as , Health Insurance Portability and Accountability Act (HIPAA) and the Affordable Care Act (ACA). These compliance regulations are aimed at healthcare practices to protect patients’ privacy, ensure fair billing practices, and prevent fraud.

 Outsourcing to a qualified and experienced third-party provider can ensure compliance and reduce the risk of costly fines and penalties. Outsourcing the services of physical billers who are highly proficient in compliance laws and regulations can help your practice avoid potential fines or penalties for non-compliance, and be up-to-date on compliance requirements.


Outsourcing physical therapy billing can help practices improve revenue, reduce administrative burden, improve compliance, enhance the patient experience, and increase efficiency. By allowing billing professionals to manage the billing and collections process, practices can focus on providing high-quality patient care.

Reference: Medical Billing Outsourcing Global Market Report 2023 – By Service (Front End, Back End), By End User (Hospitals, Physician Offices), By Component (In-House, Outsourced) – Market Size, Trends, And Market Forecast 2023-2032.,billing%20practices%20in%20the%20USA. The Business Research Company. Accessed April 07, 2023.

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