What Is a Medical Billing Service?

There are many components that make the medical field work as a finely tuned instrument. Medical billing is one of those components that help undergird the doctors and nurses who work to save lives. Some smaller clinics choose third-party medical billing service companies to handle the administrative duties that involve collecting payments for treatment. What exactly is medical billing, though? Read on to find out!

Medical billing is a payment processing system that involves the healthcare provider obtaining insurance information from the patient.


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This information is ultimately used to secure payment for everything from surgery to x-rays.

Most medical billing specialists collect personal information to use as verification when charging a patient’s insurance company. A person’s full name and birthday are especially important when billing an insurance company. Some providers will deny a claim outright if this information is incorrect.

Most large hospitals hire employees who specialize in collecting information and securing payment. Directly hiring individuals to carry out the practice, however, may be a financial burden on small clinics. Such is the reason for third-party medical billing service companies that have employees who are skilled professionals in the field of coding and billing.

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