The traditional billing system involves lots of paper work and manual documentation. Since the documentation is done manually it has a high rate of errors and subsequently higher percentage of rejections by the insurance companies. In addition, reimbursement for performed services can take months if using this billing system. Electronic medical billing, on the other hand, has eliminated many disadvantages of the traditional billing system and enabled the healthcare providers to save both their time and money which is why most private practices as well as hospitals and clinics have switched to electronic billing system.

Electronic medical billing system has revolutionized the process of reimbursement and has several advantages over the traditional billing system. Firstly, the electronic billing software eliminates the paper work and subsequently potential human errors which are the number one cause of relatively high rate of rejections by the insurance companies in the traditional billing system. In case an error in the claim does occur, it is reported in a matter of minutes enabling prompt corrections. Secondly, this software significantly reduces the paper costs because the claim is filed via electronic means but what is even more important is the fact that fast, accurate and easy to use electronic billing system reduces the need for administration personnel enabling healthcare practitioners and facilities to increase their profit and subsequently improve the quality of their services to patients.

The electronic medical billing has other advantages besides facilitating and speeding up the billing process. The electronic billing software is also designed to keep medical records of the patients enabling both the physicians and patients an easy and fast access to personal information, while the software can be also used for other important tasks including report writing, accounting, scheduling appointments, tracking insurance payments, etc. saving a lot of time as well as money. There are also software systems that can be accessed via portable devices enabling the billing work outside the workplace.

As you see, electronic medical billing offers numerous advantages over the traditional billing system and helps improve both productivity and cash flow of healthcare practices and facilities. Most electronic billing software systems are highly flexible which means that they can be easily adjusted to specific needs of medical practices. There are two main types of this software known as client server and application service provider. Both offer all the advantages of electronic medical billing but there are several differences between both software systems that should be taken into account before making the final decision. You are also highly recommended to make sure that the chosen electronic billing software complies with the provisions of the Health Insurance Portability and Accountability Act (HIPAA).