In-House Billing vs. Medical Billing Company: What’s Better?
Every medical practice reaches a critical point where it must evaluate whether to keep billing operations in-house or outsource them to a professional medical billing company. This decision has long-term implications on revenue, workflow efficiency, compliance, and the overall patient experience. While both approaches offer pros and cons, the right choice depends on the size of your practice, available resources, and long-term goals.
In this comprehensive guide, we’ll compare in-house billing to outsourcing with a medical billing company, breaking down the costs, benefits, and risks associated with each model. We’ll also explain why more clinics are partnering with Thrive Medical Billing to gain efficiency and peace of mind.
Understanding In-House Billing
In-house billing means your clinic handles the full revenue cycle management process internally. This includes patient data entry, insurance verification, charge entry, coding, claim submission, denial management, and collections. Typically, a team of medical billers and coders is responsible for maintaining this operation.
Pros of In-House Billing
Control Over Processes:
When billing is done internally, you have full control over every step of the process. Your team works directly with patient records, your EHR system, and insurance payers.
Direct Access to Staff:
Having billers on-site means your providers and staff can communicate in real-time about coding questions, insurance issues, or billing anomalies.
Customization:
Your in-house team can adjust workflows specifically tailored to your practice’s specialties, volume, and preferences without needing to go through an external service provider.
Cons of In-House Billing
High Staffing Costs:
Salaries, benefits, ongoing training, and turnover create significant costs. Hiring experienced billers and coders—especially certified ones—adds up quickly.
Technology Expenses:
Running billing software, maintaining secure servers, and staying compliant with HIPAA and insurance regulations all require major IT investments.
Vulnerability to Errors and Burnout:
Small teams often get overwhelmed by claim backlogs or regulation changes. A single employee’s absence or resignation can disrupt the entire revenue cycle.
Limited Scalability:
When your practice grows, in-house billing teams may struggle to keep up without hiring more staff, which increases overhead.
What Is a Medical Billing Company?
A medical billing company is a third-party service that manages the complete billing and revenue cycle process for healthcare providers. From claim creation to payment posting and denial management, these companies handle everything behind the scenes while your team focuses on patient care.
At Thrive Medical Billing, we offer tailored solutions for solo practitioners, multi-specialty clinics, and healthcare systems, delivering higher accuracy, faster reimbursements, and reduced administrative burden.
Pros of a Medical Billing Company
Cost Efficiency:
Outsourcing eliminates the need for full-time billing staff, training, and technology infrastructure. You pay a percentage of collections or a flat fee—often far less than in-house operational costs.
Expertise and Compliance:
Medical billing company professionals are trained in ICD-10, CPT, HCPCS, and payer-specific guidelines. They stay updated with the latest regulation changes and billing trends.
Faster Reimbursements:
With dedicated staff and optimized workflows, billing companies process claims quickly and follow up on rejections without delay—leading to improved cash flow.
Advanced Reporting and Analytics:
Companies like Thrive Medical Billing offer real-time dashboards, monthly performance reports, and data-driven insights to help providers make smarter financial decisions.
Scalability:
As your practice grows, a billing company easily adjusts without you needing to hire or train more people. Whether your volume increases or you add new services, they scale with you.
Cons of a Medical Billing Company
Less Direct Control:
While reports and updates are available, you don’t have immediate access to billers as you would with an in-house team. Communication is key to ensuring a smooth partnership.
Dependency on a Third Party:
Outsourcing means trusting an external provider to handle your practice’s finances. That’s why choosing a reputable and transparent partner is essential.
Cost Comparison: In-House vs. Outsourcing
Let’s break down a typical cost comparison:
In-House Billing Monthly Estimate:
Two billing staff: $6,000–$8,000
Billing software and IT support: $500–$1,500
Office space, training, and supplies: $1,000+
Total: $7,500–$10,500/month
Outsourced Billing (via Thrive Medical Billing):
4–7% of monthly collections (average)
No staffing, software, or infrastructure costs
Included reporting, compliance support, and denial follow-up
Total: Variable, but generally 30–50% lower than in-house
This means outsourcing can save thousands of dollars each month—without sacrificing accuracy or control.
Common Myths About Medical Billing Company Services
“We’ll Lose Control Over Our Revenue Cycle.”
This is a common misconception. With a professional medical billing company like Thrive Medical Billing, you receive full visibility into your financial data and control over approvals, reporting, and workflows. You gain transparency—not lose it.
“Our Practice Is Too Small for Outsourcing.”
In fact, small practices often benefit the most. Without the budget for a dedicated billing team, outsourcing offers affordable access to top-tier billing talent and technology.
“Patients Will Be Confused or Upset.”
Reputable billing companies maintain professional communication with patients, answer their billing questions, and handle disputes with empathy and clarity. Thrive Medical Billing ensures a smooth, respectful experience that reflects positively on your clinic.
When to Choose In-House Billing
In-house billing may make sense if:
You have an established billing team with strong performance
You’re part of a large hospital system with internal infrastructure
Your providers are heavily involved in coding and prefer tight control
Your EHR integrates poorly with external billing systems
Even in these cases, many practices use a hybrid model—keeping certain billing tasks in-house and outsourcing the rest to a medical billing company.
When to Choose a Medical Billing Company
Outsourcing is ideal when:
You want to reduce overhead and staffing headaches
Denial rates are rising and reimbursements are slow
Your current billers are overworked or underperforming
You’re starting a new practice or expanding rapidly
You want expert insight, reporting, and long-term scalability
Thrive Medical Billing partners with practices in every stage of growth, offering tailored solutions based on your specialty, size, and goals.
Why More Clinics Trust Thrive Medical Billing
At Thrive Medical Billing, we do more than just process claims. We act as your strategic partner in financial success. Our team:
Submits accurate claims within 24–48 hours
Tracks and appeals denied or underpaid claims
Offers specialty-specific billing knowledge
Provides custom reporting and performance reviews
Ensures compliance with HIPAA and payer rules
We take pride in being responsive, accountable, and proactive. With Thrive Medical Billing, practices typically see a 15–30% improvement in collections and a noticeable reduction in stress.
Final Verdict: What’s Better?
There’s no universal answer—each practice must assess its resources, pain points, and goals. However, for most small to mid-sized clinics, working with a medical billing company like Thrive Medical Billing offers a better return on investment, fewer operational headaches, and higher long-term growth.
If your in-house team is stretched thin, your denial rates are high, or you’re spending too much time managing the revenue cycle, it’s time to consider outsourcing. With the right partner, the transition is smooth—and the benefits are lasting.
Ready to make the switch? Contact Thrive Medical Billing today for a free consultation and discover how we can transform your revenue cycle.