How Does Medical Billing and Coding Works

by | Dec 11, 2020

Medical billing and coding are inter-related and inter-dependent fields. When a patient visits hospital, patients is first checked by an insurance counter that whether the patient is entitled to receive the medical services or not. After confirming the entitlement of the patient, the patient is checked by the doctor. After thorough examination, doctor writes the diagnosis, necessary medications and lab tests. Once this process is complete, patient is pushed towards the medical coder. Medical billing and coding are entirely different tasks in terms of their functionality.

Benefits of Outsourcing Medical Billing:

Apart from doctors, practitioners, and nurses, other professional staff plays a crucial role in the maintenance and reputation of the hospital. Medical billing is one of such field which requires a dedicated and experienced team because finance is involved. Many hospitals prefer to outsource medical billing involving the third party for various reasons. It is quite a challenging task to choose a professional and dedicated third party, so the decision for medical outsourcing should be wise as it brings a lot of benefits if the decision is appropriately

Save Money and Time:

After outsourcing medical billing, third party takes responsibility of the infrastructure, maintenance and purchasing of the software. Company utilizes its time in the specialized functions it meant for. This leads to maximum revenue generation for the company and improved growth in terms of performance.


When you outsource the medical billing and coding, it is the responsibility of the third company to take measures in order to maintain the integrity of data. Professional billing companies make sure that data is protected and there is no illicit activity happening associated to billing software.


In medical billing, rules and regulations use to change with each passing day. For complying the international standards, it is necessary to follow the changing trends. While performing operational duties, it become difficult to maintain and keep pace with the changing trends in medical billing. By outsourcing medical billing and coding, the third party handles all the rules and regulations and makes them up to date. It saves time of a health company to focus more on operational procedures and patient care.

Labor Cost:

When you outsource medical billing, there are many headaches which you get rid of. If you do medical billing by yourself, there is a long and tiring procedure of hiring and training the staff and equipping them with evidence based knowledge in the field of medical billing.

Capital Investment:

The third partner manages it, and because of their expertise, they often do not need to make capital investment as well. By outsourcing medical billing, doctors, practitioners, and nurses get a quality time to give to patients and check the patients with more attention.

Trained Staff:

Medical billing companies are mostly well versed in their work. They keep a keen eye on medical billing operations. In this way, health companies get a trained and professional staff without any hiring or training process, reducing the cost and the time.

Satisfied Patients:

It is the patient’s satisfaction matters at the end. It is been observed that patients comprehend one thing at a time. They cannot handle multiple things at a time. On the other hand, in outsourcing, when medical billing experts will separately handle the medical billing of the patient, it would not put a burden the patient, and they shall be satisfied with the company’s services. Medical billing company and host company, both are at benefit because satisfied customers add to credibility and authenticity of the company.

Cash Flow:

Outsourcing helps in cash flow as the third part makes it easier to handle the billing proceedings and make the shuffle of cash in terms of cash flow towards a health company.

Concrete Result:

With outsourcing medical billing, a health company shall be having a monthly report of billing without any delay as professional outsourcing staff work like this to generate a monthly report of all the current billings and forward to the client i.e. a health company.

Eliminate Financial Burden:

There shall be less financial burden as there is no allocation of Sick pay, vacation benefit. Workers’ compensation. When you will not hire a separate staff for medical billing, you will be saved from stressing out on giving the incentives to the employees.

Keeping in view all the reasons for outsourcing medical billing, you can look up to various billing companies around for handling the billing finances .There are various local medical billing companies providing finest medical billing services.


    Get a Quote

    Subscribe to Our Newsletter

    BillingFreedom is among the best medical billing services provider for healthcare practitioners, individual practices, physician groups, and hospitals. BillingFreedom is among the best medical billing services provider for healthcare practitioners,

    5 Reasons to consolidate your medical billing company on to a single platform

    Individual practices, physician groups, and hospitals.

    More Articles Like This…