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Medical Billing Services for Dermatology Practices

Every healthcare practice needs a reliable way to handle their medical billing process. Practitioners and physicians need to make sure insurance claims are submitted accurately, patient balances are collected efficiently, and revenue is being managed closely. However, dermatology is a field where medical billing tends to be a bit more complicated than normal. It’s important for dermatologists to make sure they are finding a medical billing staff that can professionally and reliably handle your practice’s revenue cycle and billing process.

Why does my dermatology practice need medical billing services?

Although medical billing and coding is no easy profession, medical billing for dermatology tends to be even more demanding than general medical billing. Dermatology medical billing requires knowledge of its own set of procedures, laws, regulations, and contractual obligations. Billers who help dermatology practices have to go through a particular set of training and acquire credentials.  Additionally, medical billing for dermatology requires very close attention to detail and frequent training on medical billing and coding updates. 

Billing & Coding Training

For example, dermatology procedures must be coded using Common Procedure Terminology (CPT) or International Classification of Diseases (ICD) codes. These codes are periodically updated (ie. once a year), at which time billers need to go through additional training to make sure they are familiar with any changes and new guidelines. In addition, each procedure varies depending on the size and dimension of the dermatological procedure site. Different dermatological procedures such as skin examinations, skin conditions, lesion removals, etc. are all billed and coded differently. This requires a very particular knowledge and skill set. A professional who is trained in general medical billing procedures may not know how to properly bill for dermatology practices.

This is why most dermatology practices cannot simply handle their medical billing in-house. They have to hire medical billers who have training in their particular field. Additionally, it’s best for dermatologists to find medical billing companies who have plenty of years of experience helping other dermatology practices. That’s why typically, it makes the most sense for dermatologists to outsource their medical billing needs.

How can my dermatology practice benefit from a medical billing service?

There are tons of reasons for dermatologists to outsource medical billing needs. In addition to outsourcing making sense practically for dermatology practices, there are lots of benefits that you can’t overlook.

1. Improve Revenue

Professional medical billers and coders are trained to work diligently to improve your practice’s revenue. Your revenue depends directly on the accuracy of each billing claim submission. This means that if you aren’t using highly trained medical billers, you’re running the risk of losing hard-earned money for your practice. 

Usually, a partnership with a medical billing company means that they are receiving compensation for each approved insurance claim and patient payment. For this reason, they have a great incentive to fight for each insurance claim to get submitted properly, promptly, and effectively. Typically this results in a boost in your bottom line revenue.

2. Save Money on Hiring and Staffing Expenses 

In addition to improving revenue, outsourcing medical billing services for your dermatology practice means that you will be saving money on hiring a back-end staff. When dermatologists choose to hire in-house billers, they have to deal with hiring, salary, and software expenses, among others. If you outsource, you will save more money comparatively.

3. Reduce Error

It’s important that you don’t run the risk of hiring a billing staff that may submit insurance claims with errors. Professional dermatology billers have gone through extensive training on medical billing and coding procedures. They will reduce the risk of your claims being rejected, which means you will ultimately earn more money.

4. Boost your Practice’s Credibility

Dermatology practices that bill incorrectly run the risk of appearing unreliable and therefore losing patients. When each patient’s procedures are billed promptly and correctly, your practice will gain a good reputation as reliable and professional.

5. Get Accurate Data

Most medical billing companies use high-end software that can be integrated with your back-end systems. That way, you’ll never have to wonder about the status of patient claims, outstanding balances, and other financial data. Your billers will handle the complicated billing and coding procedures, while you can access real-time data with the touch of a button.

6. Ensure HIPAA Compliance

Professional medical billing companies are highly trained in adhering to HIPAA compliance laws. You will never have to worry about putting your practice at risk for disobeying patient privacy laws.

7. Focus More Time on Patient Care

With a reliable medical billing company handling your financial needs, you will reduce your workload and stress! Think about how much time you will be able to save and instead focus on patient care.

How much does medical billing for dermatology cost?

Medical billing for dermatology fees works much like medical billing for any other healthcare practice. Medical billing companies will bill using their particular fee structure, which more often that not will be one of the following: 

Pay per amount collected

Many medical billing companies will charge your practice based on the total they collected for your practice on all insurance claims submitted. This usually excludes co-pays, deductibles, and other in-office payments. Think of this as the medical billing company’s commission. They help you earn the most money for each submitted claim, and you pay them a percentage of that money earned. You can expect this rate to be between 4-16% of total earned.

Pay per claim submitted

Some companies will charge based on how many claims they submit on your practice’s behalf. Based on the number of claims they submit, they will collect a percentage of these gross claims. This is a less common fee structure. One reason is because without monetary compensation (aka their commission), there is less incentive for them to go to bat for you to get the maximum amount for each submitted claim.

Pay per total collections

There is also a fee structure that says the medical billing company will receive a percentage of your practice’s total collections, including in-house payments such as deductibles and copays. Be careful of this pricing model, as it may require you to pay more than other more common pricing models.

To learn more about pricing models for medical billing, read our medical billing for physicians guide.

Who are the top billing companies for dermatology practices? 

Wondering which medical billing companies specialize in dermatology? We’ve put together a list for you, highlighting some major companies who do medical billing for dermatology and their top features.

Company FeaturesPricing
Cure MD - Integrated cloud platform
- Clinical tools
- End-to-end billing
- Patient portal
- Convenient dashboard
- Secure messaging
- Data reports
- And much more
Starting at $295 per month
Kareo - Secure patient portal
- Electronic billing
- Simple charting
- ICD-10 compliant
- Secure messaging
- And more
Starting at $110 per month per provider
Athena Health - Claims management
- Appointment setting
- Performance reporting
- Revenue cycle dashboard
- Patient check in
4-7% of total practice revenue

Next Steps

If you are curious about outsourcing medical billing needs, take a look at other commonly outsourced services for dermatology practices:

You may also want to consider dermatology office essentials such as medical billing software and VoIP for healthcare.

Ready to compare medical billing quotes for your dermatology practices? Use our free comparison tool to match with the best billing services for your needs and save up to 30%!

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