Third Party Billing

Written by Kimberly Clark
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A third party billing service is a company that prepares invoices for services rendered or products sold by another company and then submits the invoice to either the consumer or another party (commonly referred to as the third party payer) that is responsible for paying the bill. It is often the responsibility of third party billing service to make sure the invoice actually gets paid, so from time to time they also have to engage in collection activities. In general, the third party billing service is simply a contracted middleman and has no affiliation with either the provider or the payer.

Several different industries outsource their bill processing to a third party billing company. However, some specific examples of businesses that use third party billing are medical providers, healthcare professionals, hospitals, freight companies and universities. Typically, a third party billing service is contracted when the preparation of the provider's invoices becomes too complex for them to do themselves.

Rehabilitation Billing

In most cases, this complexity can be attributed to the requirement that the invoices adhere to a certain coding system or a set of government regulations before being approved for payment by the third party payer. For instance, in the field of rehabilitation, the services provided are usually paid for by outside agencies. The payers consist of either private healthcare insurance companies or public assistance programs, such as Medicaid and the Veteran's Administration.

In the rehabilitation field, therapeutic services like occupational, physical, and speech therapy are the ones most commonly billed for by third party billers. Claims are also being prepared and submitted for rehabilitation counseling. So whether your bills need processing, submitting or paying, there is third party billing service out there to meet your needs. A less expense route is find a comprehensive billing software suit to handle your needs.

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