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August 15 2022 · 8 min read time

Why and How You Should Build an Automated Medical Billing System

Billing is crucial to the success of any healthcare practice. However, medical billing can often be complex and time-consuming, involving numerous repetitive tasks. In this guide, discover how automation solutions can streamline and enhance the efficiency of medical billing in your practice.

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James Walker

Senior Automation Specialist at Destan

Billing is the backbone of any healthcare practice. While it’s typically a complex and labor-intensive process, filled with repetitive tasks, have you considered streamlining it with an automated medical billing system?

The Medical Billing Process

Medicalbillingprocess

Medical billing’s repetitive nature makes it an ideal candidate for automation. Additionally, with the constant pressure on organizations to optimize efficiency and ensure reliability, automation plays a vital role in improving the billing process.

This article delves into the role of automated billing systems in the healthcare industry, their significance, and the steps involved in their implementation.

Why is Automation Crucial for the Medical Billing System?

Automation streamlines every critical aspect of medical billing, handling tasks that might otherwise be time-consuming for human workers. By detecting billing errors before claims are submitted, automation helps ensure faster payments from payers. Additionally, robotic process automation (RPA) solutions can improve collections by sending automated bill notifications to patients via text or email.

In the United States, billions of dollars are spent annually on preventable healthcare expenses. Below are several reasons why automated medical billing is essential.

Accurate Documentation

In an industry where paper document processing costs $20 per filing, healthcare providers complete an average of 20,000 forms annually. In medical billing, which involves extensive administrative tasks like creating patient profiles, eligibility checks, and verifying billing information daily, achieving error-free documentation is essential for every healthcare provider.

Reduce Operational Costs

Consider the revenue cycle management (RCM) process, which handles the collection of medical bill payments and generates revenue for healthcare organizations. RCM can be costly and time-consuming, as it involves administrative data like patient details, treatment codes, and insurance information, along with financial billing data. Ideally, receivables aged over 120 days should be between 12-25%, but automating RCM tasks can reduce this to under 12%.

Optimized Medical Billing

Healthcare providers leveraging RPA for medical billing automation know that sticking with outdated billing systems can lead to disorganized claims processes and costly mistakes. In 2021, coding errors contributed to $28.91 billion in payment mistakes, as reported by the Centers for Medicare & Medicaid Services (CMS).

Automated Appointment Scheduling

Automation streamlines the patient scheduling process, with RPA bots handling everything from appointment booking to registration and visit completion.

Streamlined Revenue Cycle Management

Revenue cycle management is critical in automated medical billing. Healthcare providers often have to navigate various technology systems to gather data, including patient medical history, drug and disease codes, and insurance eligibility. Reimbursement is based on the precision of medical billing codes, and any misstep in this process could lead to incorrect payments.

Automated Medical Billing – Final Thoughts

A streamlined and efficient workflow ensures a smoother work environment. Automated billing systems assist healthcare providers in minimizing human errors and ensuring accurate claim processing.

With Destan automation services, our expert RPA developers, including UiPath consultants, are ready to enhance your medical billing process by integrating multiple healthcare data sources with your company’s database. Contact us today for top-tier RPA consulting services!

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James Walker

Senior Automation Specialist at Destan. Expert in Process Optimization and RPA Solutions.

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