Why is the billing process important? Explain.
In short its important because that’s how providers and their staff get paid.
The billing process is vital to the existence and financial health of a medical practice or facility – such as a hospital. So its important to have accurate patient insurance information, data of birth, address, etc. This information must be correctly entered and submitted with CPT treatment and ICD diagnosis codes in the claim.
Once the claim is paid, the contracted insurance payment, write-off, and patient responsibility must be entered into the medical claim software to keep the patient accounts current. This is the info from the Explanation of Benefits (EOB) or Electronic Remittance Advice (ERA) provided with the insurance payment.
Keeping this info current is vital to managing patient accounts and keeping them current. Practices whose patient accounts are not maintained well require a lot of time and effort to clean up. And there’s usually a lot of lost revenue when these the patient accounts are not kept up.
So in summary the medical billing process is important to insure the provider is paid for their services as well as the providers staff.