Monday, December 10, 2012

How Physician Billing Affects a Practice


Medical practice profitability depends largely on the efficiency of their billing processes, as this determines how they get paid for any medical services provided. In order for a medical establishment or physician's office to thrive, their billing procedures must be streamlined and effective.

What Is Medical Billing?

Medical or physician billing is the process of sending invoices or submitting claims to medical insurance companies in order to receive compensation for medical services rendered. These can include diagnostics, tests performed, general office visits, hospital and emergency room visits, examinations, surgery, treatment, or any other service that a doctor or medical professional provides to a patient.

What Do Insurance Companies Expect From Medical Billers?

Medical insurance companies have certain expectations regarding the claims and bill generating process; therefore, it is very important for all healthcare billing services to have a clear understanding of these procedures in order to receive timely and accurate payment.

There is a very standard process used to submit claims for payment to insurance companies. The patient's medical record and background history, the nature and depth of the physical examination, the extent of procedures performed, if any, and the intricacy of the medical decision making process are all evaluated to define the correct degree of service to use when billing the insurance company.

A trained medical coder then converts the degree of service into a standardized procedure code interpreted from the current procedural terminology database. The diagnosis is converted into a code as well, interpreted from another standardized database. The medical coder then compiles both codes into a claim, and the claim is submitted by a medical biller to the insurance company.

Typically, claims are submitted electronically using what is called an Electronic Data Interchange, which often submits the claim directly to the payer. In addition to electronic claims submission, about 30% of medical insurance claims are still submitted manually, using an actual paper form.

Why Is It Important To Bill Properly?

Billing and claim filing for medical services is an extremely complicated process, but it is integral to the success of any medical practice. Billing an insurance company improperly or using the incorrect method by which to file a claim can result in the insurance company delaying payment, or even denying the claim entirely. This will force the biller or medical professional to start all over with the claim filing process. For a physician or medical professional who renders countless medical services every day, this kind of time between providing the services and receiving payment for them is completely unacceptable.

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