Types of Medical Billing Systems in Healthcare
medical billing systems

Types of Medical Billing Systems in Healthcare

Medical Billing is the entire process of claims submission to ensure that the healthcare provider receives the reimbursement. The medical billing system is categorized into three types, namely – (i) Closed system, (ii) Open system and (iii) Isolated system. We will be discussing each in detail in this article. Read on to understand the Medical Billing systems better.

Importance of Medical Billing Systems for Healthcare

The medical billing system for healthcare is an essential aspect. This has a direct impact on the revenue cycle. It involves essential matters such as claim submission, AR follow up and ensuring that the healthcare setup receives the reimbursement. By understanding its kind, it would be easier for you to improvise your existing system that will optimize your revenue cycle management.

Closed System:

A closed medical billing system involves the usage of digital tools to track records on a singular practice. One of the most widely used digital tools is Electronic Medical Records (EMRs). This is used to keep records of a patient’s entire information, starting from diagnosis, treatment and plans. It serves as an electronic medical paper chart. This can only be used within practices.

You have to switch to an alternate approach, such as outsourcing the revenue cycle. This setup is only beneficial for an unattached healthcare facility with less number of physicians.

Open System:

The open system is more about the synergetic design. This medical billing system offers easy access to the information for everyone (providers, patients, chief stakeholders, insurance payers, medical billing teams and third-party vendors). It is because all the information gets transferred to the Electronic Health Records (EHR), which allows editing when accessed by several medical professionals. Furthermore, it is integrated in a way that the data remains safe from unauthorized users keeping it secure.

These days, the open medical billing system is widely used due to its flexibility. As a result, it has benefitted the healthcare organization, especially those who have planned to outsource their revenue cycle. 

Isolated System:

The isolated medical billing system is personally maintained by the patient, where they record the details as per their convenience. This medical billing system uses particular software tools that assist the patient in carrying out the procedure. It involves the Patient Health Records (PHR). Here the patients will fill in the details themselves. By ensuring open communication and transmission, they can utilize any software tools that they need. The PHR can never replace the legally approved system EMRs and EHRs. It is soles for the patient’s personal way of maintaining their records.


As intimidating as the medical billing systems may seem, all you have to do is understand them and keep a close eye. The best alternative is outsourcing, which will give you great results. At I-Conics Solutions, we learn exactly how to deal with the overarching healthcare network. This way, we can help you get the optimized result that you are looking forward to. You will enjoy a healthy revenue cycle by outsourcing the medical Billing to us.

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