How Does Outsourcing Dermatology Billing Services Benefit Your Practice?

Outsourcing Dermatology Care Billing Services
  • Avatar photo Victor Bala
  • Jun 27 2024
  • Reading Time: 11 minutes.


Every healthcare company requires a reliable method for managing medical billing procedures. Practitioners and physicians must submit accurate insurance claims, collect patient balances on time, and manage revenue responsibly. However, in the field of dermatology,, medical billing services are frequently more difficult.

For dermatologists, it is critical to find medical billing professionals who can competently and consistently handle their practice’s revenue cycle and billing procedures. Stay tuned as we explain how outsourcing dermatology billing services to a reliable partner can increase income and effectiveness at your office.

Why is medical billing necessary in my dermatology practice?

Although working in medical billing and coding is not an effortless job, dermatological billing is usually far more difficult than general medical billing. Understanding the procedures, legislation, regulations, and contractual obligations unique to dermatology medical billing is essential.

Billers who support dermatology practices must complete a specialized training program and get certificates. Furthermore, this profession requires ongoing training in the latest medical billing and coding standards, as well as meticulous attention to detail.

Coding and billing training

For instance, we must code dermatology procedures using the International Classification of Diseases (ICD) or Common Procedure Terminology (CPT) codes. Every time these laws undergo amendments, approximately once a year, billers must undergo additional training to stay updated on any changes and new restrictions. Each treatment varies depending on the form and size of the dermatological procedure site. Different billing and classification systems apply to different dermatological procedures, including skin examinations, skin issues, lesion removals, and so on.

This necessitates a highly specific set of skills and knowledge. Someone trained in standard medical billing procedures likely won’t know how to appropriately bill for dermatology billing services. As a result, the majority of dermatology clinics are unable to manage their medical billing effectively. They are required to collaborate with medical billers who have received specialized training.

Dermatologists can also look for medical billing businesses that have extensive experience working with other dermatological offices. Consequently, dermatologists frequently outsource medical billing services.

What are the advantages of outsourcing dermatology medical billing services?

Dermatologists have several compelling reasons to outsource their medical billing responsibilities. We should not overlook the various benefits of outsourcing dermatology practices.

  • Increase Revenue
    Professional Velan HCS is willing to go above and beyond to help your practice generate more cash. The correct presentation of each billing claim directly impacts your revenue. That means if you don’t hire qualified medical billers, you risk losing the money you’ve worked so hard for your clinic. A relationship with a medical billing company sometimes includes payment for each accepted insurance claim and patient payment. They thus have a strong motivation to fight for the timely, accurate, and proper submission of each insurance claim. In most circumstances, this increases your bottom-line revenue.
  • Cut hiring and staffing expenditures
    Outsourcing medical billing services will enable your dermatology clinic to save money on hiring back-end workers while also generating revenue. When dermatologists decide to hire in-house billers, they must consider factors like manpower, compensation, and software, among others. In terms of cost savings, outsourcing is preferable.
  • Ensure correctness
    You must avoid hiring a billing team that may submit incomplete or erroneous insurance claims. Professional dermatology billers have undergone extensive training in medical coding and billing procedures. As a result, they reduce the likelihood of your claims being dismissed, thereby enabling you to generate more revenue over time.
  • Enhancing the credibility of your practice
    Dermatology practices run the risk of losing clients due to inaccurate billing. If you bill each patient’s operations on time and precisely, your practice will develop a strong reputation for dependability and professionalism.
  • Obtain accurate information
    Most medical billing organizations utilize state-of-the-art software that seamlessly integrates with their back-end systems. As a result, you will never have to worry about how patient claims are developing, outstanding balances, or other financial details. While you may get real-time data at the touch of a button, your billers will handle the complex billing and coding procedures.
  • Maintain HIPAA compliance
    Professional medical billing companies have received considerable training in HIPAA compliance. You will never have to worry about harming your practice if you violate patient privacy policies.
  • Prioritize patient care
    When a professional medical billing service handles your financial needs, you will have less work and less stress! Instead of focusing on time savings, think about how much time you’ll have available for patient care.

Dermatology billing challenges

Coding and billing for medical services is tough for any medical practice, but dermatological clinics have additional challenges. Some of the most common cases are described below.

Multiple insurance coverages

Dermatology is the most common medical specialty in terms of procedures and treatments. Each payer pays for dermatology services differently, based on their insurance coverage. The prospect of unpaid services affects the physician’s financial status. However, when dermatology medical billing and coding specialists do the treatment, they know what to look for to send accurate claims to payers and get you paid on time. Our dermatology medical billing agency comprehends the intricacies of the standards and precisely codes every procedure to guarantee the correct reporting of the covered procedures.

Cosmetic versus medical procedures

Dermatologists treat a wide range of ailments, some of which may or may not be “medically necessary,” depending on their severity, concurrent conditions, and other considerations. Once again, coding specialists need specialized training to correctly identify each diagnosis and operation and apply the appropriate coding modifications. Our team keeps up with the latest code updates and specializes in dermatology medical billing. Contact us today to optimize your reimbursements.

Bundling procedure

In many cases, combining charges for similar treatments simplifies coding. However, billers and coders must comprehend the contents of bundles and refrain from billing for items not included, as this would violate the over-coding limitations. You can be sure that we will handle your claims correctly and prevent over- and under-coding when you use our medical billing services.

Denials and rejections of claims

Due to the numerous rules and differences between covered and uncovered services, dermatology firms deal with a large number of rejected or refused claims. Resolution necessitates the employment of expert billing professionals who can quickly identify the issue or disagreement and determine how to explain the code for the claim to be reimbursed.

Hire a dermatology billing expert

Outsourcing to a trustworthy medical billing company may be a viable option for professionals who are having difficulty with dermatology medical billing themselves. Because medical coding in this subspecialty is so complex, physicians may find it difficult to stay on top of billing regulations and ensure proper reimbursement. By cooperating with a professional billing company, dermatologists can streamline their billing procedures, free up internal resources, and obtain complete billing services, all of which improve income.

Get started with Dermatology RCM

A comprehensive revenue cycle management solution for dermatology lets you respond rapidly to industry developments, streamline your procedures, and ultimately improve your profitability. However, many practices don’t know where to begin. Start by asking essential questions to improve your dermatology medical billing processes.

  • What is your overall clinical collection?
  • What is my net collection ratio (the percentage of money collected compared to the amount owed legally)?
  • What are your existing insurance adjustments and write-offs? Are they justified?
  • What is the outstanding amount from my day’s sales, and how long does it take to collect the money from the service?
  • What are my outstanding accounts receivable balances, and how much can I expect to collect within the next 0–60 days?


With the increasing complexity of dermatologists’ coding practices, an expert such as Velan HCS is required to assist with outsourced medical billing services and collections. For the best dermatology medical billing solutions, call Velan HCS immediately at (+1) 727-756-1632.


Q: Should I consider outsourcing dermatological medical billing?

A: Outsourcing dermatology medical billing can boost your practice’s collection rate by up to 20%. It enables you to focus on patient care while experts handle billing, coding, and claim follow-ups, resulting in faster and more accurate compensation.

Q: How does outsourcing boost revenue collection?

A: Professional Velan HCS are familiar with dermatology billing codes and standards. They can eliminate claim errors, accelerate claim filings, and provide regular follow-ups, resulting in increased revenue collection and fewer denials.

Q: Will outsourcing billing lead to increased regulatory compliance?

A: Yes, outsourcing to a specialized medical billing company, such as Velan HCS, helps to assure compliance with industry norms and laws. This lowers the risk of audits, penalties, and other compliance difficulties.

Q: Will outsourcing dermatology billing result in lower operating costs?

A: Outsourcing can considerably save operational expenses by reducing the need for in-house billing personnel, training, and costly billing software. It allows you to pay for only the services you require, providing a cost-effective alternative.

Q: How do I select an appropriate dermatology billing service provider?

A: Look for a dermatology billing provider with a proven track record, such as Velan HCS. Make sure they provide upfront pricing, cutting-edge technology, and individualized customer service. Inquire about their expertise with dermatology practices and success rates for improving collections.

Q: What kind of assistance might I expect from an outsourced billing service?

A: You may expect complete support, such as frequent communication, thorough reports, and a dedicated account manager. Velan HCS provides tailored billing solutions and continuous support to match your dermatology practice’s specific requirements.

Q: How do I start outsourcing dermatological medical billing?

A: Reach out to the Velan sales team at [email protected] or (+1) 727-756-1632 to initiate the process. They will conduct a free consultation to better understand your billing requirements and create a customized plan to maximize collection and improve revenue cycle management.

Avatar photo

Victor Bala

Medical & coding

About the Author:

Victor has over a decade of experience in delivering revenue cycle management services to the US healthcare providers. He has a proven track record of accelerating revenue collection by streamlining the billing, coding and AR processes. His team at Velan has been delivering revenue cycle management cycle, appointment scheduling, pre-authorization and credentialing services to physicians, group practices, and hospitals.

He can be reached at [email protected]

Considering the complexities of healthcare billing in the USA, why choose Velan HCS for your billing services?