For owners of healthcare facilities, having an efficient system in place to manage your billing processes is absolutely paramount. Aside from simply streamlining some of your practice’s daily operations, proper healthcare billing systems can actually have major impacts on your financial health, so it’s definitely worth understanding which type of billing system is right for you.
Still, when it comes to the healthcare industry, there are actually a few different types of medical billing systems that are crucial for healthcare professionals to know about, and they all come with their own set of pros and cons.
So, throughout this article, we’ll be taking a look at the three most common types of medical billing systems that are used by healthcare organizations across the country: open, closed, and isolated.
Ultimately, the one that’s most fitted to your specific practice will be dependent on your unique requirements, but by having a baseline understanding of each of these systems, you’ll be able to make a far more informed decision about which one you should go for.
Let’s kick things off by taking a look at one of the most common billing systems:
Open Medical Billing System
Open medical billing systems are usually referred to as web-based or cloud-based systems, and they’re actually one of the most common solutions used in the healthcare industry.
As implied by the name, this kind of system operates on the cloud rather than local networks, meaning that healthcare providers like yourselves can access billing information and perform tasks from literally anywhere with an internet connection.
Advantages
Accessibility
Naturally, one of the most significant advantages of this kind of billing system is how accessible it is. Whether it’s accessing patient records, personal health records, or even claims information, you can do so remotely, making it incredibly convenient for busy medical practices.
Scalability
Open systems are typically able to accommodate any growth within your practice without needing any major infrastructure changes since you can add new users or functionalities as your practice expands.
Disadvantages
Cost
In the long run, they can be pretty cost-effective, but some of the initial setup costs are usually higher than other billing solutions.
Internet Dependency
Since you rely on a stable internet connection to use this billing system, any downtime or slow internet can significantly disrupt your billing processes.
Closed Medical Billing System
Alternatively, you could opt for closed medical billing systems that are installed locally on your practice’s servers or computers instead of the internet.
Advantages
Control
You generally have the most amount of control over your billing software and data with one of the systems, as you don’t need to rely on external service providers for access or any updates.
Customization
You can also customize them so they meet your practice’s specific needs, making them much more adaptable to your workflow.
Disadvantages
Upfront Costs
As with the open billing system, setting up this method can be relatively expensive as things like hardware purchases, software licenses, and even IT support need to be accounted for.
Maintenance
You’re the one who has to maintain and update this system, which can be pretty time-consuming for a small practice to do – especially without dedicated IT support.
Isolated Medical Billing Systems
Lastly, this kind of billing system is normally quite a basic software solution that’s separate from your electronic health record (EHR) or other practice management system. In general, these systems are used solely for billing, so they might not offer any integrated features.
Advantages
Simplicity
Isolated billing systems are incredibly straightforward to use, so they’re ideal for small practices with fairly minimal billing needs.
Cost-Effective
They’re also a lot more budget-friendly since they have fewer features, making them a solid option for smaller practices without the funds to splash out on an open medical billing system.
Disadvantages
Lack of Integration
Still, these are pretty limited systems as they won’t always integrate with your electronic medical records, so you might encounter things like duplicated data entry and other errors.
Explore Medical Billing Options With PMN
Whether it’s an open, closed, or isolated billing system, the point remains that these systems cost money and can be fairly expensive to maintain – especially for smaller practices with fewer resources. Aside from that, they can also take up a lot of the time that you should primarily be focusing on your patients and your day-to-day operations.
So, from medical billing and coding audits to more general physician services, consider partnering with an established medical billing partner like PMN to give your patients the experience they deserve.
If you’d like to learn more about the various services we can offer your practice, don’t hesitate to get in touch with us at (949) 215-5055 or by booking an in-person appointment at our office in Laguna Hills, Orange County, California.
FAQs
What Factors Should I Consider When Choosing a Medical Billing System For My Small Practice?
When you’re selecting a medical billing system for your practice, consider factors like your budget, how much you need remote accessibility, and even the level of customization you require. In addition, check if the system can scale quickly in order to accommodate your practice’s growth.
Can I Switch From One Type of Medical Billing System to Another If My Practice’s Needs Change?
While it’s definitely possible to switch between different medical billing systems, it’s normally a pretty complex process – involving things like data migration, staff training, and even potential downtime. So, before making the switch, try to assess your practice’s needs and perhaps consult with your new system provider, too, so you can ensure a smooth transition.
