Many hospitals and other healthcare organizations are struggling to stay afloat financially. “Health systems are facing a margin cliff as the aging of the US population combined with lower reimbursement from government payers puts pressure on traditional revenue sources,” according to Deloitte.
Administrative costs for American medical practices, government health agencies, and insurers total nearly $360 billion annually. And billing-related functions account for a sizable portion of those costs.
Best billing services EMR has the potential to lower costs, save providers time, and increase patient satisfaction. Many healthcare organizations, however, need to adopt digital billing alternatives faster. These organizations may be endangering themselves. According to McKinsey & Company, organizations that invest in digital capabilities such as electronic medical billing may gain a competitive advantage.
Third-party electronic medical billing companies are turning to digital billing for the providers they serve to speed the revenue cycle, increase patient payments and provider revenue, reduce costs, and drive higher patient satisfaction.
What Exactly is Electronic Medical Billing Services (EMB)?
Electronic medical billing is when a healthcare provider or third-party electronic medical billing company submits a bill or claim to a patient or third-party payer (typically an insurance company).
After a patient visit, the provider assigns diagnosis and procedure codes to the interaction. These codes assist insurance companies in evaluating claims and any associated coverage. Claims are submitted to insurance companies electronically in the form of an ANSI 837 file, designed to meet HIPAA (the Health Insurance Portability and Accountability Act of 1996) requirements for the electronic submission of healthcare claim information.
Medical claims adjusters review submitted claims and are reimbursed based on established percentages for each procedure if approved. Claims that are denied are returned to practitioners for additional information or clarification.
Electronic medical billing also refers to billing patients directly, whether self-pay or insured with established deductibles or other out-of-pocket expenses. Electronic medical billing, mobile billing, or digital billing can supplement or replace paper billing to speed up payments and reduce costs.
Advantages of Best Billing Services EMR
The most frequently mentioned advantages of using electronic medical billing are lower costs and shorter revenue cycle times between patient care and payment. Electronic medical billing can provide additional practice benefits, particularly when combined with electronic medical records and other digital initiatives.
Lower Prices and Quicker Payments
Healthcare providers that use electronic medical billing could see a significant profit increase. According to Harvard University economist David Cutler, switching to electronic billing could save the US healthcare system $32 billion annually.
Efficiencies in Operations and Administration
Electronic medical billing in healthcare practices can streamline administrative functions as part of more significant mobile-first initiatives.
Patient Satisfaction has Increased
No one likes getting a bill, but with increased patient financial responsibility, patients expect to pay at least some of their medical expenses.
Can Electronic Medical Billing Help Your Healthcare practice?
Healthcare is rapidly changing due to financial challenges, new medical breakthroughs, and shifting patient expectations. “Digital technology has the potential to transform medicine and the healthcare industry in a sustainable way,” according to Deloitte.
Electronic billing is an integral part of this evolution. Electronic medical billing, especially with digital patient records, can improve a healthcare practice’s financial performance while increasing patient satisfaction.
Careful planning and execution can help healthcare providers who have yet to make the transition achieve the many benefits promised by electronic medical billing.