Understanding The 3 Different Types of Medical Billing Systems

Updated: Apr 15

Medical billing systems play a huge role in the healthcare industry. They are complex and multifaceted to meet the healthcare network demands. This network encompasses patient care, medical billing and much more. There are three different types of medical billing systems: open, closed and isolated. In this article, you will learn the difference between them all.


1. Open


An open system enables cross-industry collaboration, as it allows transfers of information between different professionals and practices. For example, to enable the sharing of patient information or billing systems across more than one facility. This approach, however, has to be used with caution, to remain compliant with the Health Insurance Portability and Accountability Act (HIPAA).


2. Closed

Picture of calculator, EKG report, stethoscope and heart for medical billing systems

A closed system is the opposite of an open system, in that it restricts any sort of transfer to other professionals or facilities, including the use in urgent care or laboratory tests. The most common closed system used in the health industry is electronic medical records (EMRs).


3. Isolated


Isolated billing systems are specifically designed to enable patients more autonomy and control over their medical records by using personal health records (PHRs). This means that systems are removed and records are not accessible to medical professionals or healthcare facilities. The information is completely separate and under full management by the patients themselves. This is the least common system used in healthcare.


The medical billing systems are an important aspect of any healthcare facility to consider, as they will dictate the type of record-keeping you have, the software you use, and the extent of outsourcing. There are pros and cons to all systems and will depend on your facility's preferences.


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