Medical Billing System Analysis

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The medical billing process is an interaction between a health care provider and the insurance company (payer). The entirety of this interaction is known as the billing cycle sometimes referred to as Revenue Cycle Management. This can take anywhere from several days to several months to complete, and require several interactions before a resolution is reached. The relationship between a health care provider and insurance company is that of a vendor to a subcontractor. Health providers are contracted with insurance companies to provide health care services. The interaction begins with the office visit: a physician or their staff will typically create or update the patient's medical record. This record contains a summary of treatment and demographic…show more content…
The level of service, once determined by qualified staff is translated into a standardized five digit procedure code drawn from the Current Procedural Terminology database. The verbal diagnosis is translated into a numerical code as well, drawn from a similar standardized ICD-9-CM . These two codes, a CPT and an ICD-9-CM (will be replaced by ICD-10-CM as of 10/1/2014) are equally important for claims processing. There are many necessary and very important steps involved in the medical billing process. These steps include: preregistering patients, establishing the financial responsibility for the patients visit, signing the patient in, checking the patient out, reviewing coding compliance, check billing compliance, preparing and transmitting claims, monitoring payer adjudication, generate and provide statements for the patient, and following up on patient payments and handling any collections. Step 1 Preregister patients - Get their contact and insurance information. Check the patient into the system and also check out. Schedule and update all

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