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Benefits Of Outsourcing And Offshoring Medical Coding Processes

Medical coding can be defined as the transformation of healthcare procedures, diagnoses, medical equipment, and services into alphanumeric codes. We can say that medical coding processes involve the translation of medical services into codes that play a vital role in billing. For this purpose, medical coders are trained.

The medical coders play a vital role in assigning internationally recognized numeric codes to the medical procedures and diagnoses for billing the insurance companies. Some healthcare companies have an insource medical coder whereas some companies outsource medical coding processes.

This guide explains to you the benefits of outsourcing and offshoring medical coding processes. You will come to know about the efficiency of outsourcing medical coding processes. Let’s have a look at these benefits:

Improve Cost Efficiency

As we know that there are too many expenses for healthcare organizations that’s why they are always looking for different ways to save money. They find different ways to invest in the use of the latest technology so that the latest and smart care solutions could be provided.

Outsourcing and offshoring have been proved beneficial in providing different ways for unlocking labor costs so that access to the latest technology could be gained. These latest technologies may include robotic process automation where all the tasks could be performed automatically. These latest technologies are available at lower costs.

Enhanced Coding and Billing Compliance

We know that the guidelines of medical billing and coding are not standard across the country, so there are a lot of unwritten payer-specific requirements when the framework is provided by ICD-10. This is the time when there is a need for a medical coder.

The offshore and outsourced service providers are the ones that invest in documenting the guidelines of medical coding and billing. These may include local coverage determinants, compliant use of modifiers, and medical necessity guidelines. Thus, coding and billing compliance can be enhanced in this way.

Accelerated Cash Flows

Let us tell you that hospitals and healthcare providers can enjoy cost-effectiveness along with earning huge profits by hiring expert vendors. These vendors must be able to handle medical coding and billing services in an efficient way. Outsourcing the medical coding and billing processes is helpful in maintaining the speedy collection and quick cash flows.

Stay Focused on Patient Care

Outsourcing and offshoring medical coding and billing services help doctors and healthcare services providers to stay focused on patient care. It means they do not have to spend time on medical coding and give time to the patients instead. Moreover, when you consult the experts for coding purposes, they provide you with accurate results which in turn avoids costly rework.

You should know that when healthcare service providers spend time documenting medical and coding processes, they can not provide quality services to the patients. That’s why it is beneficial to hire a third-party service provider to get this work done so that the doctors could provide quality care services to the patients.

Patient Satisfaction

The patients can be satisfied when they are provided with great care by the doctors and other healthcare service providers. No doubt, the goal of every provider and medical company like a hospital is to treat the patients in a better way.

When you outsource the medical coding and billing processes, you will see that there is no error in the codes. Moreover, the denials are also followed up quickly which in turn improves the focus of the healthcare service providers on patient care.

Enhanced Safety

You should make sure that you consult a professional to get quality service in medical coding and billing. There are many companies that offer you multi-factor verification and are HIPAA compliant where the purpose is to protect the data and information against different intrusions.

You are also provided with extra infrastructure and security according to your wills and desires so that the whole process of medical billing and coding could be safeguarded. Thus, you can enjoy enhanced safety levels when you decide to offshore and outsource medical billing and coding services.


When you outsource and offshore medical billing and coding services, you can enjoy a high level of scalability. Let us tell you that the professionals make sure that the alignment of all the care services is efficient according to the business requirements.

The offshore company or service provider always makes sure that the organization is at a high level of scalability. Thus, the services are provided to the healthcare company accordingly along with meeting the SLA timely.


  1. What is a medical coding process?

Medical coding is a process that involves the extraction of billable information from the clinical documentation and medical record. This information is then used for medical billing purposes using the defined codes for creating the bills of the patients.

  1. What is the reason behind outsourcing and offshoring medical coding processes?

The major reason behind outsourcing and offshoring medical coding processes is to save the time of the healthcare providers so that they could provide quality services to the patients instead of spending time on coding and billing processes. Moreover, getting error-free results is also a reason behind it.

  1. What is the role of a medical coder?

A medical coder is a translator who reviews the file of the patient and translates it into universal codes that are needed by the insurance company.


As we know that every healthcare service providing company or hospital needs medical coding and billing services so that the patients could be charged accurately for the services they have gotten. Many healthcare companies outsource these services to save the time of the physicians and enhance the quality of health care to the patients.

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