Cost-Benefit Analysis: Is Outsourcing Medical Answering Services Worth It?

Understanding Medical Answering Service Costs

In today’s environment of rising costs, reduced reimbursements, and staffing shortages, medical practices are looking for alternatives to full-time staffing solutions. One of these solutions is outsourcing medical services, with a notable example being medical answering services.

Like any operational change, it’s essential to consider the cost versus the benefits and if this solution is the right choice for your practice. Here, we’ll explore some key strategies to help you determine if virtual receptionists would bring added value to your patients and operations.

Typical Pricing Models

When outsourcing medical services, you’ll find answering services offer varying pricing models. Some of the common approaches include:

• Tiered Pricing: These plans allow medical practices to select a plan best suited to their needs. Each plan offers a certain number of minutes at a set price. This scalable model lets you adjust your plan as your practice grows.

• Per-Minute Pricing: This plan is based on a specified price per minute.

• Per-Call Pricing: Though not as common, some medical answering services charge a flat rate per call.

• Flat-Rate Pricing: These plans provide a fixed monthly cost, with some offering unlimited calls or minutes. This strategy works particularly well for budgeting and for practices with high call volumes.

• Customized: Smaller practices and larger clinics may benefit from a customized, cost-effective plan designed specifically for their call volume and budget. Some choose to include virtual nurse triage services in their plan to optimize patient care after hours.

Factors That Influence Pricing

Several factors influence the cost when outsourcing a phone answering service. Practices with higher call volume depend on plans with more minutes. Those who tend to have longer average call duration, whether due to their speciality or patient needs, also experience higher costs.

A medical answering service may also provide numerous other services, such as secure messaging, nurse triage services, and patient outreach. Adding these services to your plan will also increase your monthly costs.

The True Cost of In-House Staff

The U.S. Bureau of Labor Statistics reported the average salary for a medical assistant in 2024 was $44,200. For employees who maintain medical records, the median wage rises to $50,250. Benefits, including paid leave, insurance, and legal requirements like social security, add about 30%. So, a medical assistant whose wage is $44,200 is actually costing your practice closer to $57,460.

Additional costs include recruiting, onboarding, and training. In the healthcare industry, this training can be intensive. It often involves education in HIPAA compliance, learning new software, and adhering to specific office protocols and procedures.

When Outsourcing Makes Financial Sense

Medical outsourcing reduces costs associated with training, hiring, and wages. It’s also scalable, providing a virtual receptionist only when you need them, whether after hours or during peak periods of incoming calls. That said, it’s not the right choice for every practice. To determine if it’s right for you, consider the following.

Break-Even Analysis Framework

A break-even analysis determines when your investment provides a positive return or the costs equal the revenues. When analyzing an answering service, it’s essential to measure its impact on revenue, labor costs, and patient experiences. For example, how many additional patient appointments are being scheduled due to 24/7 coverage? How much are you saving compared to hiring more full-time staff?

Practice Size Considerations

Larger practices with high call volumes find that having the support of a virtual receptionist whenever needed takes the pressure off overburdened staff and ensures prompt and professional call handling.

Utilizing a medical answering service enhances operational efficiency by freeing up staff to perform their administrative tasks. These services scale to meet the needs of any organization, regardless of size, and integrate seamlessly with existing systems.

Call Volume Thresholds

Practices reaching or exceeding their call volume threshold will find a growing number of patients being put on hold or leaving voicemail when they call. When this occurs, it can lead to a poor patient experience, inadequate care, lost revenue, and staff burnout. Working with a medical answering service that’s available as needed ensures every call is answered.

Quantifying the Benefits Beyond Cost Savings

Beyond reducing costs, outsourcing medical services may also increase revenue. Virtual assistants who perform patient outreach ensure that patients receive reminders about upcoming appointments. One study of over 125,000 primary care visits showed patient reminders reduced no-shows by 7%.

When every phone call is answered, at any time of day, and new or established patients are reaching a person instead of voicemail, the result is more appointments.

And the benefit of reducing the workload for your front office staff? High burnout rates and stress have long contributed to ongoing shortages in the healthcare field. According to HRSA Health Workforce, in 2023, almost 30% of healthcare workers intended to leave their jobs within two years. Another study found that the rate of healthcare workers leaving their jobs remains higher than pre-pandemic levels.

Medical outsourcing answering services translates to a better experience for patients, reduced stress for front office staff, and improved operational efficiency.

Red Flags: When Outsourcing May Not Be Right

When outsourcing healthcare services, the company you work with must be HIPAA compliant, well-trained, and integrate with your existing software. As virtual assistants, they have direct access to sensitive patient information, making it essential that they know how to protect it.

As an extension of your team, they need to know basic medical terminology and your office protocols. Some key red flags to be aware of include a lack of transparency in reporting and analytics, hidden indirect fees, and a standardized approach with no customization options considered. It’s also essential to work with a service that focuses specifically on the healthcare industry and employs U.S.-based virtual assistants.

Making an Informed Decision for Your Practice

Deciding to outsource a vital aspect of your practice can feel like you’re letting go of the reins. For that reason, and more, it’s essential to work with a company that has a solid reputation and one that you can trust.

At notifyMD®, we are the first answering service to gain HITRUST certification, demonstrating the highest level of security for sensitive patient data. With 30-plus years of experience, you can count on our U.S.-based team to provide you, your patients, and staff with the highest standards and practices in medical answering services.

Of course, like many things in life, it’s hard to know if a service or product meets your needs and is a good fit until you experience it. For this reason, we offer a free trial, enabling you to evaluate our service and the benefits it provides you, your patients, and your staff. To learn more about our services, contact notifyMD®.