Lexology July 21, 2025
When a healthcare provider hires a third-party billing company, the goals are clear: streamline revenue cycle operations, ensure timely collections, and reduce administrative burden. While outsourcing billing may offer operational efficiencies, it also introduces significant legal and financial risks—especially if the billing agreement isn’t thoroughly reviewed and negotiated.
From solo practitioners to group practices, ambulatory surgery centers, and mental health treatment facilities, all healthcare organizations need to understand the fine print of their billing contracts. Below are key provisions to watch for and why they matter.
Liability for Billing Error
Who is liable when something goes wrong? Many billing contracts contain broad disclaimers stating that the billing company is not responsible for any coding or claims errors, even when the...
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