It looks as though all those jokes (and lawsuits) that have centered around doctors’ terrible handwriting may soon be a thing of the past. Medicare’s recently passed law HR 6331, which gives providers financial incentives to e-Prescribe, has strengthened the growing trend of medical practices moving toward a paperless office.

It’s not just the prescription pad that is falling by the wayside. An increasing number of practices and payers alike are recognizing that documenting and charging for a patient visit electronically through a practice management software system is the most efficient method of operation. The benefits for providers are numerous - electronic medical billing can dramatically reduce rejected claims and shorten the reimbursement cycle, and electronic medical records keeps organized (and legible) patient information at a care provider’s fingertips. But there are advantages for payers too. They might not benefit from fewer rejected claims or having to reimburse providers more quickly, but they do benefit from a streamlined claims process that requires less administrative support. In a system where the take-up rate of innovations depends greatly on payers’ acceptance, completely paperless medical offices might be commonplace within a decade.   

Last month, the U.S. Senate did not pass House Resolution 6331, which would prevent scheduled 10.6 percent reductions in Medicare payments. Although there is a good chance that the bill, with some potential modifications, will be put in front of Congress again in the next couple of weeks, physicians are currently trying to find the best way to deal with this significant drop in reimbursement. For some, this means closing their doors temporarily; for others, it means refusing to accept patients with Medicare plans for all but emergency cases. The problem is compounded for those that do not have an efficient medical practice management and billing system, because their reimbursement cycles are even longer. Medicare pays paper claims no sooner than 29 days after receipt, but electronic claims as little as 14 days after receipt. Additionally, medical billing software such as NueMD allows users to file claims cleanly the first time, meaning rejection rates from Medicare and other payers drop to between zero and three percent. Having that extra money coming in promptly might prove vital for practices that would be impacted by the reduced Medicare reimbursement rates.