The US healthcare industry is complicated system of interconnected activities and organizations. The legal and technological environment entailing the healthcare industry is continuously evolving. When medical billing used to be done on paper, often doctors or their assistants did the complete paperwork themselves. However, with changes in US healthcare laws, electronic health records (EHR) became almost a necessity for healthcare providers, which in turn led to the emergence of specialized medical billing services in the US.

There are some organizations which are still using the paper-based systems, but they are at a substantial competitive disadvantage. Furthermore, due to an aging US society and the disease becoming more and more complicated, clinics and hospitals are becoming jam-packed with patients. Not only doctors and their support staff do not have time to delve into the complicated medical billing process, but it is also not a job of multitasking office assistants anymore. Neither can organizations afford to hire specialized staff and technology needed to do the medical billing in-house.

Many clinics and most large hospitals are outsourcing medical billing and coding functions to specialized third parties. These medical billing companies have made considerable investments in custom-made certified EHR technology and retain full-time specialized staff that processes tons of claims on a daily basis. It enables them to reduce the inefficiencies that creep up into the in-house medical billing. Medical coding is a process which deals with assigning standard codes to the various diagnosis and procedures performed by health service providers. It is done per ICD-10-CM or ICD-10-PCS coding systems developed by the WHO and modified by the centers for Medicare & Medicaid services (CMS) and National Center for Health Statistics (NCHS).

Medical billing services, The processing of medical claims may span over just a few days to several months. On occasions, there are numerous forward and backward movements in the process, and this can occur due to errors in the initial registration and confirmation. Therefore, patient verification and authorization is a crucial step that may be performed on every visit. The primary objective of patient verification is to confirm financial responsibility for the medical services performed. Insurance coverage and plans differ significantly from carrier to carrier depending on the state and the premiums paid. Many healthcare providers hire medical billing and coding services providers to utilize their state-of-the-art technology and to avoid costly errors.