Medical Billing vs. Medical Coding: Understanding the Differences
Medical Coding: The Translator
What it is: Medical billing and medical coding are two distinct but closely related functions that are absolutely essential to the financial health of any healthcare organization. While they often work hand-in-hand and are sometimes even performed by the same individual in smaller practices, understanding their individual roles is key to comprehending the healthcare revenue cycle.
Medical Billing: The Financial Manager
What it is: Medical billing is the process of submitting and following up on claims with insurance companies (and sometimes directly with patients) to receive payment for the medical services provided. It essentially translates the coded information into a financial claim.
In essence, medical coders build the accurate foundation of medical data using a universal language, and medical billers use that foundation to navigate the financial complexities of the healthcare system, ensuring providers get paid for their services. Both roles are vital and contribute significantly to the overall efficiency and viability of healthcare operations.