Home » Articles » Medical billing automation and its advantages

Medical billing automation and its advantages

The healthcare sector is going through a significant shift. One, optimizing costs has become more important than ever. Two, the post-pandemic era requires much quicker and more effective customer service to be given to patients. 

Operations involving medical billing and coding are essential to providing both. Every healthcare provider relies on billing, but it is a highly complicated process involving dozens of staff and is prone to error. 

Thus, healthcare businesses opt to utilize an efficient and reliable billing system. Medical billing automation is the key to effective billing management. 

Defining medical billing automation

Medical billing automation automatically charges inputs and scrubs claims and remittances using timers and natural language processing. This routine is done based on how often a healthcare company submits claims. 

This computer software is made to carry out routine and repetitive operations. Automation helps to complete tasks much quicker and with fewer errors. 

By automating the medical billing process, healthcare organizations can significantly increase their income and general profitability.

Get 3 free quotes 3,000+ BPO SUPPLIERS
Defining medical billing automation

Advantages of medical billing automation 

The most frequently cited advantages of implementing medical billing automation include lower costs and shorter revenue cycle periods between patient care and reimbursement. 

When combined with electronic medical records and other digital initiatives, medical billing automation can have additional advantages for practices.

Here are other benefits of medical billing automation:

Accurate and proper documentation

Healthcare is one of the industries where submitting paper documents costs a significant amount each time a procedure is filed. These companies fill out thousands of forms every year. 

There’s a lot of administrative paperwork that happens in medical billing. This includes creating and registering patient profiles, eligibility verification, and other billing information validation. All must be error-free, which is the goal of every healthcare provider. Medical billing automation offers significant help in this aspect. 

While outsourcing is an option, there is no doubt that automation can boost productivity while reducing the number of staff assigned to a process. It will also help healthcare providers to ensure that they remain compliant with HIPAA and other applicable regulations. 


Setting up electronic medical billing does not just free up time and resources, it can also improve the company’s cash flow. 

Get the complete toolkit, free

For example, it eliminates the need for paper bill storage and lowers stationery and mailing costs. Medical staff no longer need to print and mail paper invoices and follow-up notices, reducing their workloads. 

Medical billing automation can also enhance the revenue cycle of a medical organization. Manual and paper-based invoicing become less relevant as more and more patients prefer to connect via tablets and smartphones. 

The speedy claim processing and effective follow-up can potentially increase the net collection rate.

Advantages of medical billing automation

Simplified medical billing

Healthcare offices can expedite administrative tasks and gain other operational advantages by integrating electronic medical billing as part of larger mobile-first initiatives.

For example, an electronic billing system automatically updates a patient’s electronic medical record. This can minimize duplicate data entry, and a single full-patient record can be retained and updated. 

Physical billing records are susceptible to theft, mishaps, and other disasters (e.g., fire, floods, etc.). Hence, they must be preserved and protected at all costs. Medical billing automation allows backup and secure archiving of digital records. 

Medical billing automation allows practitioners to create personalized reports by connecting the billing data to the company’s current accounting systems. This provides easier access to patient data, creates more precise claims, and lessens incorrect code entries.

Human errors can be avoided with this data-sharing system.

Quicker payment posting

Medical billing automation also expedites the collection of payments. By automatically processing payments from insurance companies, patient data can be kept up to date, and patients with unpaid balances can be found. 

Employees with access to this information can speed processing fees, reduce invoicing expenses, and capture these extraordinary sums in follow-up meetings.

Enhanced patient satisfaction

Medical billing automation improves the patient experience as they expect it to be both digital and mobile. Automation not only allows patients to view their invoices on their electronic gadgets. It also enables them to initiate communication with the health care provider. 

Customers will also be delighted to be able to pay with just one click, as this process is much simpler and less complicated. 

Advantages of medical billing automation

Medical billing is made easy with automation

The healthcare industry is constantly changing to accommodate new medical advancements, shifting patient expectations, and budgetary concerns. 

Deliotte’s 2022 Survey of US Physicians shows that the demand for coding activities involved in billing and clinical documentation has increased from 15% in 2020 to 27% in 2022.

One of the crucial elements of this change is medical billing automation. When integrated with digital patient records, automated billing can dramatically improve the industry’s financial performance while simultaneously increasing patient satisfaction.

Careful planning and execution can ensure healthcare providers that haven’t made the switch realize the many advantages electronic medical billing promises.

Get Inside Outsourcing

An insider's view on why remote and offshore staffing is radically changing the future of work.

Order now

Start your
journey today

  • Independent
  • Secure
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 3,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.