About Industry Challenges
Reasons Why Most Healthcare Providers Are Challenged With Medical Billing
Day-to-day business operations at a practitioner's site represent a bustling and
eventful array of healthcare services. But most medical offices are very limited
on administrative time as their primary focus is healthcare operations. As such,
a conversion to a new system will require a significant effort and expense for the
practice, a move that they are reluctant to make.
As with any successful business, one of the keys is to keep overhead costs to a
minimum and to extend the useful life of all capital assets. To process claims electronically,
the practice will need to acquire additional software, perhaps additional hardware,
and spend a large dollar amount for training on the conversion.
On-going costs are also high. Due to the high employee turnover in medical clinics,
doctors constantly hire and train new staff. Maintaining a computer system means
paying for constant annual upgrades, training and support contracts.
STRICT PROCESSING GUIDELINES:
Healthcare providers are required to adhere to strict processing guidelines
established by insurance companies and government agencies. Failure to comply
with these strict guidelines results in claims being rejected, which in turn has
an adverse effect on cash flow. Healthcare providers seldom are willing to take
LIMITED EXPOSURE TO THE BENEFITS OF ECP
Most healthcare providers are familiar with electronic claims processing but are
unsure how the process may impact them specifically. With limited exposure, they
do not have the ability to recognize the tremendous potential in cost savings, efficiency
and improved cash flow that electronic claims processing can provide.
MOST DOCTORS ARE NOT TRAINED FOR BUSINESS:
Healthcare providers spend 10-15 years in medical studies. Even while they are practicing
medicine, they have to stay active in medical research and development. Most doctors
are not experienced in running a business. They rely heavily on professionals to
take care of their business.