Medical Accounting Software

The medical and social service industry is a heavily regulated environment because of the strict confidentiality laws regarding patient privacy. Keeping records safe is extremely important. It’s also required that medical practices keep accurate financial records to comply with industry standards.

Keeping track of all the requirements and laws doesn’t have to be challenging if you’re using medical accounting software. The software does the organizing and managing of data for you. Another helpful feature of accounting software is the billing to different insurance companies. This includes billing to Medicare and Medicaid.

In this article we'll cover the core features you'll find in most medical accounting software. We'll also expand on the main accounting functions used for medical organizations. Lastly, we'll touch on the costs and share some important questions you should ask before you make a purchase. Once armed with all this information you’ll be ready to make a sound decision.

These features are specifically designed with the healthcare industry in mind:

• Medical management: The software conveniently manages the buying and distribution of medical supplies. It also takes special precautions when purchasing lab materials and pharmaceuticals with a limited shelf life to safeguard you against inventory losses.
• Patient management: The bureaucracy in the healthcare industry when it comes to accounting can be complex and burdensome. There are co-payments to consider, reconciliation of EOB forms and having to deal with Medicaid & Medicare services. The software disentangles the maze of submissions and coding to ensure hassle-free billing.
• Integration: The software can integrate the medical records of patients into the system. It also links the patient notes, family history and demographics of each patient. Some of the more advanced features on some packages are voice recognition notes and e-prescribing that integrates with EMR technology effortlessly.
• HIPAA compliance: Even though the software is mainly geared to assist with your accounting functions it should also cater to compliance with HIPAA’s privacy regulations. Whenever a patient’s data is included in your system you have to ensure there’s sufficient space for compliance.
• Patient portals: Communicating with your patients is important. Your software solution should provide uninterrupted access for patients to view their medical records. Patients should also be able to settle bills and make appointments on the same platform.
• Reporting: Financial reporting is one of the main tasks in any organization. This software generates reports by filtering data into fields such as medical supplies, employee codes, etc. It captures all your transactions and can analyze your total income. It also provides valuable insights into your performance and can pick up on trends.

Even if you didn’t have all the elaborate features we’ve listed above, only having the following features will still give you essential functions in your organization.

General Ledger

This book acts as a reservoir for all the financial transactions in your organization. It’s used to prepare all your financial statements. It gives you a clear picture of all the revenue received and expenditures. It also accounts for the liabilities and assets in your organization.

Accounts Receivable

It's also known as the fluid assets of the organization. It keeps track of all the potential income you should receive for services rendered but not yet paid. There’s also the possibility of bad debt so all the potential income might not be realized.

Accounts Payable

This is also referred to as liabilities. These obligations are all the money your medical organization owes to your service providers and creditors.

The cost of software varies as it's dependent on many factors. Considerations, such as how many users will you be utilizing system, come into play. Will you opt for a cloud-based solution or hosted solution on-site? What additional features would you need for your unique environment besides the common features?

These are all indicators that will assist you in getting a fair indication of how much it may cost. It's advisable to ask for a quote from your preferred service provider as they tailor-make their packages. The starting cost on some of the packages can range from $30 to $95 per month per user. Some more comprehensive solutions can peak at $8000 for on-site hosting. It all depends on what you need.

A good place to start when you’re doing comparisons is to ask for a free trial. That'll give you valuable insight into how well the software will work in your environment.

The most important factor you should take into account when selecting medical accounting software is the size of your organization. It’s also important to distinguish what type of medical organization you manage to get the right software solution for your niche.

Some other vital questions to ask yourself before deciding are:

• How frequently do you bill insurance companies such as Medicare, Medicaid and patients combined?
• Do you need software that can manage your electronic medical records or are you already using software and only need accounting software specifically?
• Do you anticipate storing private patient data in your accounting software?
• Do the features in the software solution match your type of facility and the size of it?
• Is there capacity to generate accurate and appropriate reports for the auditors?
• Can it reconcile insurance claims and scrub medical claims?

Conclusion

Working in the complex world of medical facilities and social service organizations can be stressful. You're dealing with sensitive patient information that needs to be safeguarded. On the other hand, you have to fight your way through bureaucratic systems when claiming from insurance companies.

There's an easier way of handling these challenges. Medical accounting software is equipped to make billing and invoicing easier by using digital solutions. It also protects patient information and generates accurate financial reports on demand. It's a centralized system that can increase efficiencies in your organization.

Leave us a comment below and share your recommendation for the best medical accounting software solution.