Business and Healthcare Accounting Software Are Not the Same
There are a lot of additional complexities that come with managing healthcare spending and costs. For this reason, if you’re a healthcare organization seeking healthcare accounting software, you should know that there are some differences you’ll need to look for when selecting a system. A simple business accounting solution may not cut it if you’re seeing a lot of patients on various insurance plans and patients with varying payment methods. Here are some ways that healthcare accounting software differs from regular business accounting software.
More parties to Coordinate Between
Doctors officers and third-party payers such as medicare, medicaid, insurance companies, TRICARE, CHIP, and others do not always agree on pricing.
More Methods of Payment and Reimbursement
One payer may reimburse your providers on a Fee for Service basis, while others may work on a capitation basis. Keeping all of this in line and on track can be very complicated. Therefore, a specialized accounting portal that manages how you get paid is key.
More Sensitive Information
Sure, businesses keep sensitive information in their accounting systems, but it’s often not as personal as a patient’s health information. Because of this, healthcare organizations have to take extra technical, physical, and administrative measures to keep patient data safe. They also must comply with the Health Insurance Portability and Accountability Act (a.k.a HIPAA) to avoid expensive fees or penalties.
More Technical Implementation and Integration
Many business accounting software can plug directly into a company’s bank account to get the information it needs to track expenses. Because billing in healthcare is so personalized and varies by so much between providers, locations, etc., accounting software will have to take may different factors into account when it is initially set-up. In addition, healthcare accounting software will likely have to be integrated with any existing clinical software such as Electronic Health Records, Laboratory Information Systems, Computerized Patient Order Entry systems, inventory management systems, and personnel management systems.
Features of Healthcare Accounting Software
When looking for an accounting solution for a healthcare business, there are some features that are “must haves”. Healthcare accounting software offers some of these additional features over traditional account software such as:
Any patient data, electronic or otherwise, must conform with HIPAA rules. Accounting software is no exception to this rule.
Being able to automatically migrate ICD codes and other patient data to help with billing, AR, AP, and other financial processes makes life easier for docs, patients, and healthcare administrators.
Managing co-pays, Medicare/Medicaid reimbursements, ACH transfers, and other billing problems involving insurance companies can mean a lot of paperwork and a lot of go-between. Accounting software solutions that include features that interface with insurance providers will make accounting for your business much easier.
Purchasing and managing supplies for a healthcare organization can be complex and costly. Features that integrate with supply-chain management and your accounting software make it easier to track equipment, medication, and supply inventory and costs.
We hope this provided you with some more information on features specific to healthcare accounting software. If you want more information, check out our resources page and be sure to check our homepage for updates.