What Is a Clearinghouse in Medical Billing?

what is clearinghouse in medical billing

The medical billing industry consists of numerous branches working together to achieve their goals. However, many people don’t understand some of the industry’s departments or how they function, especially the clearinghouse sector. So, what is a clearinghouse in medical billing?

If you want to learn about clearinghouses in medical billing, PracticeForces is here to help.

PracticeForces is one of Florida’s most trusted medical billing companies. We’ve been helping healthcare professionals organize and improve their practices for nearly 20 years, giving us the experience and expertise to handle medical billing denials, claim submissions, and more. We’ve helped countless doctors improve their clinics’ efficiency, and we can do the same for you for a fair and affordable price.

Clearinghouses in Medical Billing: The Basics

When people ask, “What is a clearinghouse in medical billing?” they often confuse bank clearinghouses with healthcare clearinghouses. Although the sectors share the same name, they perform very different tasks.

For example, medical clearinghouses act as middlemen and transfer important healthcare information between insurance providers and medical experts. They perform numerous tasks ranging from claim scrubbing to payer verification, making them essential to the medical billing process. They handle most of the complex claim procedures, easing a doctor’s office’s workload while ensuring smoother and more efficient processing.

Clearinghouses utilize sophisticated software that allows them to perform various tasks quickly and efficiently. Some of these tasks include:

  • Electronic eligibility verification
  • Send claim status reports
  • Track claims
  • Review claims for errors and makes corrections
  • Update payments
  • Submit valid and procedural diagnosis codes
  • Move medical practices away from paper forms, stamps, and envelopes
  • Summarize transactions

Healthcare clearinghouse services can drastically improve a clinic’s efficiency, organization, and overall performance.

How Medical Clearinghouses Benefit Doctor’s Offices and Medical Billers

Lowers Their Carbon Footprint

Medical Clearinghouses allow clinics to transfer millions of claims digitally, significantly reducing their carbon footprint. Clearinghouses allow doctor’s offices and medical billers to diminish their paper consumption, making them more environmentally friendly.

Reduces a Clinic’s Workload

Healthcare clearinghouses handle most of the claim process for medical practices, reducing their stress and workload. Their cutting-edge software also makes the process less taxing and can improve efficiency and time consumption, allowing medical professionals to focus on patients and other aspects of their clinic.

Reduces Claim Errors

Medical clearinghouses’ advanced software catches errors faster and more efficiently than most doctor’s office employees, resulting in fewer denied claims. The reduced error count makes medical practices look more professional, painting their office in a positive light.

Contact PracticeForces for Professional Medical Billing and Clearinghouse Services

Next time you ask yourself, “What is a clearinghouse in medical billing?” contact PracticeForces. Our team can help you with all your clearinghouse and medical billing needs without surpassing your financial means. We always make you our priority and can help your medical practice reach its true potential.

 Whether you need professional clearinghouse service or guidelines for DME medical billing, PracticeForces is here to help.

Contact PracticeForces at (727) 499-0351 and see what we can do for you today!

Parul Garg, CEO and co-founder of PracticeForces, has significantly contributed to the growth of over 1,000 U.S. medical practices through her expertise in medical billing and coding since the company’s inception in 2003. With a background in Computer Science and an MBA in Human Resources, her leadership and AAPC-certified coding skills have been pivotal in managing the company’s operations effectively.

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