Note: Software as a Service (SaaS) is becoming the preferred term instead of Application Service Provider (ASP) to distinguish modern web 2.0 delivery platforms from the earlier generations; however, many writers still use ASP to describe web-based delivery platforms.

July 8th, 2009, By Carrie Nelson Medical Billing Outsourcing

Electronic medical billing makes life easier and collections more successful in a medical practice. Questions about medical bills can be answered before the bill becomes past due because of quicker response times. Complicated payment procedure for insurance companies will no longer overwhelm a billing office.

The increased productivity in billing can be directly linked to the medical billing software. Client server (CS) and Application Service Providers (ASP) make up two types. A client server requires configuration, back-up, restoration, and upgrades. Client servers are more expensive.

ASPs assure the latest in technology. The vendor is responsible for managing the technology, recovery, restoration, installations, and upgrades. The central server is located with the vendor, and data is exchanged via the internet. This minimizes troubleshooting and downtime. Electronic medical billing training can also be conducted online.

Many medical offices choose ASPs because IT staff and equipment expenses aren’t necessary. Further reasons for choosing ASPs are because of greater flexibility. The lack of equipment to install means the ASP system is faster to implement, and the training can be done online.

Post-payment audits by insurance investigators are less frequent with electronic medical billing. Cost and productivity savings, including fewer clerical errors reduced office workload, and improved coding come with electronic billing. And electronic billing software offers benefits such as compliance requirements, financial and work flow controls, and accurate procedure coding for patients.

Built-in compliance protection prevents electronic billing software from committing fraudulent billing or coding practices or issuing duplicate bills. The compliance protection feature is crucial.

Audits are much easier. Electronic medical billing is a cost effective way to increase cash flow and guarantee billing compliance.

*Reprinted from http://www.mymedicalbillingoutsourcing.com/ under “fair use” provisions.


A Practice Analysis with a Nationwide-Solutions Practice Consultant will help you analyze the options available to you in billing systems and EHR solutions.