Anesthesia and Pain Management Industry Information
Anesthesia billing and practice management has traditionally been accomplished in one of two ways: either a group practice made the investment in people and technology to do its own billing, or the practice contracted with an outsourced provider of accounts receivable management services. There are various schools of thought as to which option makes the most sense for what kind of practice. Some argue that there are inherent economies of scale associated with setting up a billing operation that favor large practices, but the fact is that many small practices (less than 10 providers) have their own in-house billing solution.
Due to this fundamental divide in the industry, there are two types of vendors servicing the Accounts Receivable management needs of anesthesia practices: those that sell billing and management software, and those that provide a full out-sourced management solution. Software vendors typically offer stand-alone processing solutions that reflect the arcane data management needs of the anesthesia practice. These kinds of arrangements involve significant upfront expenses for hardware and software and on-going service contracts that provide software support and upgrades. The outsourced vendors package the software and technology into a global solution. Their fees are most commonly based on a percentage of collections.
As is true of many industries, the medical billing business is undergoing considerable consolidation. While there continue to be hundreds of small firms that serve very specific geographic regions, the number of truly national firms is rather small (less than 12) and shrinking each year. ABC is one of the few companies that has maintained its focus on anesthesia billing and practice management, continued to grow and remained privately held.