3 Different Types of Medical Billing structure
Closed, open, and isolated are the three different types of the medical billing system. These three different types of medical billing procedures work together interconnected. Billing is one of the large parts of the healthcare system. Medical billing includes right from billing for patient care, health institutions, as well as private practices.
- Closed type of Medical Billing System
According to medical billing, a closed system focuses on a single practice. It doesn’t allow transfers. The principal example of a closed system is the use of Electronic Medical Records in your practice. These are essentially the digital edition of older paper charts version. As the system is still in use in modern practices, it is combined with another system also. Being a closed system allows no collaboration with other healthcare facilities (like urgent care, labs, etc.) nor any transfer to other health care professionals is allowed.
- Open type of Medical Billing System
An open system of medical billing allows transfers across the healthcare professionals, practices, other facilities, etc. It is an example of using an open medical billing system with the help of EHRs, or electronic health record. Sometimes people the medical professionals interchange EHR and EMR, but, in reality, EHRs are an extremely combined system of record-keeping which allows everyone to be privy to the patient’s healthcare.
To be in an open system suggests the medical billing software, like AllMeds, AdvacedMD, McKesson, GE Centricity, etc. needs to be able to communicate and collaborate efficiently. Not all the software is allowed for an open system because they want to keep it closed and can have access to patient records. Some practitioners and healthcare facilities say that the protection of patients’ privacy is important because of compliance with HIPAA.
- Isolated type of Medical Billing System
An Isolated system fully stands apart from the healthcare facilities, doctors, and practices. Personal Health records or PHR used in isolated medical billings systems are designed and managed by them. These records are separated and shouldn’t substitute EMRs or EHRs. It is nothing but helping the patient to manage the information regarding health information.
Like every other thing, medical billing also has its pros and cons about medical billing system. Though records aren’t the only aspect of this billing system, it plays an important role in determining the system.
For medical billing, the biller collects all of the information that is found in “superbill” about the patient. These are all compiled into a bill for the insurance company. This bill contains a patient’s demographic information, medical history, and insurance coverage, in addition to a report on what procedures were performed and why.
Pros and cons
Each system has its pros and cons, so also medical billing systems. While the records aren’t the only aspect of the types of medical billing systems, it plays a major role in determining the type of system you want in your practice.
Once you’ve determined the system and the record-keeping you want, and then you can move forward on either choosing the software or keeping the one you presently have. Medical billing systems will help you determine the extent of outsourcing medical billing and coding.