Gordon Dempsey's Site

Electronic medical billing has made billing more efficient and much easier through the increased use of electronic medical billing software.Medical billing has become much easier and more efficient through the adoption of electronic billing software. Hopefully it will illustrate how to make your life easier and your collections more productive. Electronic medical billing will give you a good idea of how to make your life easier and your collections more proactive. It allows you a quicker response time to answer questions on bills before they become past due. Complicated payment procedure for insurance companies will no longer overwhelm a billing office. Electronic medical billing makes offices more efficient.

The primary reason for this increased productivity is directly linked to the different kinds of electronic medical billing software.The increased productivity in billing can be directly linked to the different kinds of electronic medical billing software. Some of these are client server, (CS) based and others are application service providers, (ASP). In addition it consists of a central server and terminals linked to a local network. Management of a client server requires configuration, back up, restoration, and upgrades after it is initially installed. Application service providers are usually less expensive than client servers.

In an application service provider environment, the central server is at the vendor's location and data is input via an Internet connection, which minimizes downtime and equipment troubleshooting. Electronic medical billing training can also be conducted online. The vendor manages the technology, recovery, restoration, installations, and upgrades. The latest in technology is assured.

Electronic medical billing software offers benefits such as compliance requirements, financial and workflow controls, and accurate procedure coding for patients. It offers cost and productivity savings such as reduced office workload, fewer clerical errors, in addition to improved coding. Greater cash flows are generated, and billings are more accurate. Post-payment audits by insurance investigators are less frequent with electronic medical billing.

Many medical offices choose application service providers instead of local client servers because IT staff and equipment expenses aren't necessary. Yet further reasons for choosing application service providers are because of greater flexibility. Another reason is because the lack of equipment to install means that application service providers are faster to implement. Online training provides flexibility in scheduling training of necessary personnel.


Built-in compliance protection prevents electronic medical billing software from committing fraudulent billing or coding practices or issuing duplicate bills. Post payment audits done by insurance companies and documentation of proper billing procedures are much easier. Federal and state enforcement agencies have brought legal action against medical billing offices. For this reason the compliance protection feature is crucial in the event that a post-payment audit triggers suspicion and causes a penalty to be accessed. Electronic medical billing has made the billing process more accurate and less prone to penalties.

There are tax advantages to purchasing the client server equipment, but these may be offset by the reduced front end cash flow. Since technology often becomes outdated every three years the replacement costs of a client server needs to be considered. An application service provider will charge a monthly service fee, but this is small compared to the sizable upfront investment needed to purchase a client server.

Electronic medical billing is a cost effective way to increase cash flow and guarantee billing compliance. There are two options, the client server or the application service provider, and both are excellent ways to employ electronic billing in your office. Both client servers and application service providers are a great way to get electronic billing onto your office. Your next step is to determine which option will fit your needs and then research the quickest way to implement new and better procedures for your medical billing office.