Electronic Health Record (EHR): Importance of EHR in Medical Billing and Coding

Technological advancements are affecting every industry, improving how individuals get things done. Electronic health records (EHR), a computerized version of traditional health records, are one of these advancements in healthcare. EHRs make it easier for authorized health workers to access patient records.

Some people might be confused, thinking EHR systems are used for managing patient data only. In reality, they play a crucial role when it comes to medical coding and billing. 

This guide will discuss how EHR software can help healthcare providers become profitable by assisting with the intricate medical coding and billing process. So, fasten your seat belt as we dive into EHR systems, their types, and how they keep healthcare practices afloat.

What Is An Electronic Health Record (EHR)?

An electronic health record (EHR) is the digital equivalent of a patient’s paper chart. EHR systems offer real-time, patient-centered records that provide authorized users with immediate and secure access to information. 

An EHR contains patients’ medical history (including the diagnoses and treatments). It is designed to go beyond the traditional clinical data obtained in a provider’s office and can include a more comprehensive view of a patient’s care. 

EHRs are a significant aspect of health IT. They can:

• Document a patient’s medical history, treatment plans, prescriptions, diagnosis, allergies, immunization dates, and laboratory test results. 
• Give providers access to evidence-based tools for making decisions about patient care. 
• Automate and streamline the providers’ workflow.

On average 96% of non-federal care hospitals and almost 80% of office-based physicians have implemented a certified EHR system as of 2021.

Becker’s Hospital Review

One of the primary aspects of an EHR is the ability of authorized physicians to collect and manage health information in a digital format that can be shared with other providers across several healthcare organizations. 

EHRs are designed to exchange information with other healthcare providers and organizations, including specialists, laboratories, pharmacies, medical imaging facilities, emergency rooms, and school and workplace clinics. So, they include data from all the healthcare providers involved.

Types of EHR Systems

There are three major types of electronic health record (EHR) systems. In this section of the guide, we are going to explore the benefits and shortcomings of each type to help you gauge which EHR software is best suited for your healthcare facility.

So, without further ado, let’s get started!

Cloud-based EHRs

If you have used Google Drive or Dropbox, you must be familiar with cloud storage. This word refers to software applications that store and transport data on specialized off-site servers or “the cloud.” 

Cloud-based EHR differs slightly from traditional apps. These systems must comply with HIPAA rules to ensure the confidentiality and security of electronic medical records. As a result, cloud-based electronic health record (EHR) comes with extra layers of protection to ensure that only authorized healthcare professionals can access patient data.

The US EHR cloud computing market is estimated to grow at a CAGR of 11.58% from 2022 to 2027. 

Mordor Intelligence

Discussed below are some of the major advantages and disadvantages of cloud-hosted EHR systems:

Pros	Cons
Authorization – Authorized care professionals can access patient information from anywhere and on any permitted device. This feature increases flexibility because employees do not have to rely on on-site computers.	Accessibility – Accessing and updating EHR data requires an Internet connection. This shortcoming may render this technology untrustworthy for firms with unreliable internet access.
Cost-effective – Many cloud-based EHR systems are inexpensive, allowing small practices with limited budgets to purchase them. Furthermore, you will not need to engage IT personnel to maintain the program.	Recurring Fee – Cloud-based services typically charge a monthly usage fee.
Efficient – Cloud storage enables healthcare workers to instantly communicate medical information with pharmacies, primary care clinics, and other healthcare providers.	Slower Uploads – Large file uploads may occasionally cause delays.
SaaS Powered – Many cloud-based EHR solutions include Software as a Service (SaaS) features to help streamline workflows. For example, an EHR platform could have an appointment planner and a payment portal.	Limited Customization – You may have fewer alternatives for customizing your EHR software to meet your organization’s specific requirements. However, some solutions are more adaptable than others.
Secure Storage – If a disaster strikes your facility, you may rest assured that your patient’s vital data is safely kept elsewhere.	Security Risk – While cloud-based EHR is typically safe, every organization must strive to achieve digital security standards to safeguard their databases.

Physician-Hosted EHRs

Physician-hosted electronic health record (EHR) software is not just for physicians. In this traditional arrangement, all medical information is housed on on-site servers owned by individual healthcare providers, senior living complexes, or organizations.

Let’s look at the advantages and downsides of a physician-hosted EHR system.

Pros	Cons
One-time Investment – You will need to invest a large amount of money to purchase servers and other equipment. However, you will not be required to pay monthly data storage fees to external EHR vendors.	Expensive – This approach can be costly because providers must buy the technology and hire employees to maintain it. As a result, these systems are often used by big healthcare organizations with substantial budgets.
Higher Speed – On-premise servers can transfer and upload data slightly faster than remote servers.	Downtime – The firm must temporarily shut down the computer system to install updates, which might be inconvenient for employees.
Flexible – You can select the best combination of hardware and software to maximize usefulness and interoperability.	Maintenance – Health IT professionals must actively monitor and maintain it to ensure the security of residents’ data.
Ownership – The healthcare facility owns its medical data without intervention from any parties.	Data Loss – If the facility goes out of business, patients may be unable to access or transfer their medical data.

Remotely-Hosted EHRs

Remotely-hosted systems keep data on third-party servers owned by EHR vendors. As previously noted, cloud-based storage is commonly used in these solutions. Other options include dedicated servers intended for certain organizations and vendor-subsidized servers.

The pros and cons of using a remotely-hosted electronic health record (EHR) system are discussed below:

Pros	Cons
Quick Start-Up – You can instantly begin using remotely hosted EHR without having to install complex hardware and software.	Accessibility – You must utilize the Internet to access data because it is stored offsite.
Cost Effective – It is less expensive than the physician-hosted system, making it more affordable for individual practices.	Control Over Data – Healthcare facilities using subsidized servers give up control of their medical data. This loss of control can result in tricky legal problems.
Low Maintenance – The server owner manages all updates and security issues, which saves healthcare companies time and money.	Downtime – The external vendor refreshes the server on their own schedule, which can cause inconvenient downtimes.

EHR Systems for Medical Billing and Coding

Healthcare reimbursement can be a lengthy, complex, and frustrating procedure. Traditionally, the medical billing and coding processes that practices must complete for healthcare reimbursement include various steps, each of which can easily be derailed. 

When these activities are carried out manually (by keying claims), there is a risk of medical billing errors, low first-pass claim resolution rates, and time-consuming administrative tasks. 

While traditional paper-based billing and coding play an integral role in the medical billing business, electronic health record (EHR) systems can significantly reduce the administrative burden on practices.

Importance of EHR in Medical Billing and Coding

One of the primary benefits experienced through electronic health records (EHR) integrated medical billing system is enhanced efficiency. Employing EHR eliminates the need for your office personnel to enter critical data multiple times, saving them effort when it comes to coding and billing. 

Besides, using an EHR system for billing allows you to send bills to insurance companies and patients in minutes, saving time and increasing your chances of getting reimbursed faster. After migrating to an EHR, most billing and coding teams can audit more encounters for accuracy rather than manually entering data from paper superbills. 

Your office staff will also find it simple to use an electronic health record (EHR) system to transmit and distribute documents containing personal information, treatment, diagnosis, and other information that patients and insurance companies require when requesting medical records. Using an EHR is faster and easier than printing, photocopying, and mailing documents when it is time to bill. 

As a result, your employees spend their time on other core duties, increasing productivity and lowering your overhead costs. In this approach, coding with EHRs benefits your practice by slashing time and costs. 

Benefits of Leveraging EHR for Medical Billing and Coding

An electronic health record (EHR) integrated medical billing system can result in the following benefit realizations for your healthcare organization:

Higher Reimbursement Rate

For running any healthcare organization, a steady cash flow is optimal. However, the following data shows that more practices struggle with payment delays than we realize.

One out of every seven health insurance claims in the US is refused. As a result, hospitals across the country lose around $262 billion per year because of rejected claims.

Montclair State University

Some of the major reasons for denied or rejected claims are as follows:

• Coding errors
• Claim forms errors
• Missing the claim submission deadline

All of the issues listed above are the result of manual data entry, bad program settings, and an overburdened staff. By using electronic health record (EHR) billing integrations, your staff can: 

• Keep all relevant information in one location. 
• Set up notifications for claim submission deadlines. 
• Make use of pre-filled patient information. 
• Align the coding and clinical documentation. 

A well-worded claim is critical for approval. Integrating billing software into your EHR system reduces a significant amount of manual work for your staff (for example, inputting the same information into two programs), eliminating human errors, coding problems, etc. 

Your healthcare facility can boost reimbursement rates by leveraging a comprehensive EHR system.

A research study found improved revenues and reimbursements following the deployment of the EHR system. 

NCBI

Better Interoperability

Healthcare facilities must demonstrate the meaningful use of approved EHR technology to participate in federal incentive programs. Improving patient care and data security entails centralizing the data by including billing solutions within electronic health record (EHR) software.

EHR billing integrations are highly interoperable. They contain data that you can share with providers requiring access to it. While sensitive information is locked, third parties may utilize the collected data to improve patient care.

As of 2021, 88% of hospitals used electronic means to convey and receive patient health information, either via querying or receiving a summary of patient care records.

HealthIT.gov

Interoperability does not only relate to seamless connection between external programs. It can also help streamline your practice’s internal operations. Keeping all information in one system simplifies the data management and claim filing process. 

Besides, EHR billing integration decreases the number of data entry points, minimizing human error. A strong centralized system detects and responds to security breaches, allowing practitioners to work with sensitive patient information with less stress.

Reduced Account Receivable Balance

Many practices experience delayed reimbursements and cash flow issues due to denied and rejected claims. This prohibits many practitioners from expanding their practices and delivering optimal care to as many patients as feasible. 

Besides, you can experience reduced account receivable levels and increased cash flow by integrating claim clearinghouse solutions with the electronic health record (EHR) system. 

Working with a reliable claim clearinghouse can help clinics improve their profitability by validating eligibility and coding correctly, reporting claim status, and providing electronic remittance advice (ERA). However, not all clearinghouses offer seamless integration with all EHR systems. Therefore, it is critical to ensure compatibility in advance.

Billing Process Automation

In the twenty-first century, automation is the driving force of success. Electronic health record (EHR) systems are designed to automate various functions, including electronic prescriptions and claim processing. A manual billing method is expensive and time-consuming. 

Even if the claim is error-free, manually entering information may take a long time. Besides, each refused or rejected claim requires additional time to address errors and resubmit the claim. 

Additionally, detecting errors before they become claim denials becomes easier when you automate the billing process. It can help the practice save time and money while improving its reputation. 

Enhanced Patient Satisfaction

Improving patient satisfaction is one of the primary goals that healthcare providers strive for. Automating the billing process and minimizing claim errors will help you improve your patient satisfaction rates. 

Using insurance eligibility verification software integrated into electronic health records (EHR), a practitioner can gain a clear image of which services are covered by the patient’s insurance plans throughout the scheduling process. Before you begin the billing process, the system should verify insurance eligibility. 

More patients increasingly choose electronic payment methods. 82% of patients would prefer to make all of their healthcare payments in one place. In addition, 85% of patients prefer to pay their medical bills electronically.

Insider Intelligence

Besides, a high-quality EHR-integrated billing system can assist clinics advise patients about potential unexpected insurance coverage fees, enhancing patient satisfaction.

Improved Analytics

Analyzing your healthcare facility’s financial operations might assist you in making critical decisions regarding development and improvement. You may leverage the electronic health record (EHR) integrated billing software’s sophisticated reporting features to determine how well your practice is performing and which areas require improvement.

Data generated from EHR systems are becoming increasingly important in enhancing patient care and driving system-wide efficiencies.

American College of Healthcare Executives

Besides, billing and claim processing analytics can help you better understand the practice’s financial status. You can use this data to optimize claim processing and improve the clinic’s everyday operations.

Things to Consider When Implementing EHR Systems

This section will walk you through the checklist you need to focus on while implementing electronic health record (EHR) software at your practice.

Invest in Training

Healthcare practices should invest in extensive training programs that address all areas of EHR use, such as documentation, coding, billing procedures, and data security. Training should be continuous and targeted to different job roles within the facility to achieve proficiency and accuracy.

EHR Customization and Integration

Customizing EHR systems to meet the unique demands and processes of healthcare organizations can improve usability and accuracy. Integration with other systems, such as medical billing and practice management software, facilitates data sharing and speeds up the medical billing process.

Regular Updates and Continued Support

EHR systems should be updated regularly to include new features, conform with regulatory changes, and resolve any potential problems or vulnerabilities. Furthermore, healthcare businesses should provide ongoing assistance and troubleshooting to answer their staff complaints and maintain continued billing operations.

Collaborative Partnerships

Collaborating with electronic health record (EHR) suppliers and healthcare IT specialists can assist healthcare organizations in overcoming deployment problems and optimizing EHR use for billing accuracy and efficiency. These collaborations provide access to expertise, assistance, and best practices, hence allowing successful EHR integration.

Achieve Medical Billing Efficiency with MediBill MD

Unlocking the full potential of your electronic health record (EHR) system for seamless medical billing can be daunting. Don’t worry! MediBill MD is here to fill the gap! While we do not provide our own EHR software, our team of professionals works as an extension of your practice to ensure that your medical billing is as efficient and accurate as possible within your current system. Here’s how.

• Our certified professional coders (CPC) use their extensive knowledge of ICD-10 and CPT coding to improve coding accuracy based on EHR data. It leads to fewer denials and faster reimbursement.
• The world of medical billing regulations is continuously changing. Our team stays up to date on all regulatory requirements. We verify that your coding and billing procedures follow the most recent regulations, preventing penalties or rejections.
• We leverage data analytics for any billing discrepancies and coding issues. This proactive strategy reduces denials and ensures that your practice receives proper reimbursement for rendered care services.
• Our billing specialists and coders are proficient in all major medical billing software. We interface smoothly with your existing system, ensuring easy data transmission and reducing the chance of error.

By working with MediBill MD, you receive access to a team of medical billing professionals who work as an extension of your practice. We assist you in fully utilizing your existing system, attaining maximum efficiency, accuracy, and compliance in your medical billing. 

Allow MediBill MD to handle the complications so you can focus on providing excellent patient care with confidence.

Final Thought

Electronic health records (EHRs) are changing the way healthcare providers work and communicate crucial patient information. They are a welcome innovation in the healthcare space, with benefits ranging from improved time management and patient care to medication administration and scheduling. But, like all technology, EHRs are constantly changing. As more practitioners utilize EHRs, additional advancements are likely to follow.

This guide covered how EHRs are helping healthcare organizations in handling complex medical billing operations. However, if you are still struggling with piling account receivables, MediBill MD is a professional medical billing and RCM company – here to assist you.