Payment Posting: Definition, Importance, and Role in Medical Billing

Payment Posting: Definition, Importance, and Role in Medical Billing


Payment posting in medical billing is considered one of the most common challenges faced by the majority of healthcare service providers. It is almost impossible to complete the process of reimbursement without the payment posting by these medical billing agencies. It is the reason that payment posting is considered the most integral part of revenue cycle management. The process of payment posting can affect many business processes of the healthcare facilities that can have a significant impact on efficiency, patient care, and overall financial growth.

What is Payment Posting in Medical Billing?

Medical Billing Process

Also known as cash posting, payment posting allows in viewing the payments while providing the snapshot of the practices of the financial picture by making it easy in identifying problems and resolving them fast. After the adjudication of the payer’s claim, it will be either paid or can be denied, and a document called EOB (Explanation of Benefits) will be sent to the healthcare service provider and will be insured.

If the claim is being processed towards the payment from the payer or patient, then a check will be issued or an EFT (Electronic Fund Transfer) can be sent to the provider from the payer with the EOB. If the patient has signed the AOB (Assignment of Benefits) document, then the payment will finally reach the patient.

The payment posting process when done precisely can examine the revenue cycle for major development opportunities so that it can increase the revenue while including the dissents and posting changes that recognize the main reason for the issues and solving all repeating problems. Since it is a crucial step for the whole medical billing process, healthcare professionals analyze its various advantages before opting to outsource this.

Types of Payment posting

Depending on the level of insurance coverage and the patient’s financial ability, payment posting in medical billing is done in two ways which are as follows:

1. Manual Posting:

Manual posting is the kind of payment posting which is completed by the administrative staff that usually takes a longer time to fill the information. This posting comes with an increased risk of various errors like typos that delays the payment posting.

2. Auto Posting:

Auto payment posting is categorized as more of a software-driven approach that most industries prefer as their digital solutions while speeding up the medical billing process for a consistent revenue stream. However, few solo medical practitioners feel that manual payment posting provides them less control over their revenue-generated system.

Why is Accurate Payment Posting Important in Revenue Cycle Management?

  • Payment posting is the most critical part of the medical billing process as it enables the healthcare service provider to monitor its incoming payments. When efficiently streamlined and properly organized payment posting helps in detecting all types of issues and resolving those issues quickly. It includes stuff like daily insurance payments from EOBs, ARAs, insurance checks, and patient payments.
  • Incorrect payment posting affects the precision of the claim submissions towards the secondary to tertiary payers. When the primary insurance payment is not posted perfectly, the chances are more than the secondary and the tertiary payers get the incorrect bill.
  • If payment posting is incorrectly done by the team, the balance of the paid account will still reflect in the system. The AR team works closely in the medical billing process and they will spend efforts and time on reimbursing the claims. 
  • To identify non-payment issues, efficient payment posting in medical billing is important while seeking solutions which include stuff like claim rejections, failure to attend prior authorization, and claim denials. 
  • The process of medical billing occurs in multiple steps, each is important for maintaining a constant revenue system. If at any of these steps, the problem has been recognized, then it can interrupt the critical process of incoming revenue while limiting the ability to treat patients and expanding patient care.
  • When a problem shows up in the process of payment posting, either the problem can be solved as a short-term process, or it can be marked as a red flag while identifying the possible patterns & recurring errors in the policies of medical billing. It can be used as a long-term improvement in your revenue stream.

Benefits of Payment Posting in Medical Billing

Payment posting is one of the most vital steps in the medical billing process and it is also a crucial component of the revenue cycle management. Below are the benefits of accurate payment posting in the process of medical billing.

1. Solving Recurring Issues

Problems can exist within the revenue cycle and they can be resolved with accurate payment posting. Payment posting in medical billing is not only limited to posting payments but also includes payment adjustments and denials. While resolving the reason for the payment denial by identifying its reason can help in preventing future claim denial.

2. Easier Analyzation of Revenue Cycle

Whenever a payment is posted on a patient’s account, an ideal occasion appears in analyzing the revenue cycle and opportunities for improvements. While doing effective analysis on payment posting, it helps in maximization of revenue cycle by improving the profitability and the functions of the account receivable departments.

3. Reduction of Denial Resolution Time

Preventing denial is considered the most effective method of resolving these. The formula which is used in this case is to closely monitor the instructions from the various taxpayers while keeping updated on the bulletins and different correspondence from the payers while providing certain information on the coding rules. Each time the denials remain unresolved contributes to the overall accounts of the receivable days.

Read More: Top Benefits of Outsourcing Medical Billing & Coding Services

4. Strengthens Existing Process

The efficiency of the healthcare service providers creates a great impact on the revenue cycle of the organization. However, sometimes the management puts less emphasis on the revenue cycle from functioning at its maximum level. Once, the problem has been recognized, then the management should focus on the solutions in enhancing the effectiveness and the accuracy of the revenue cycle.

5. Accurate Claim Submissions to the Secondary Payers

Accurate payment posting creates a direct effect on the accuracy of the claim submissions towards the secondary and tertiary payers. However, if the primary payment is not posted correctly, then there is a high chance that the billing for the secondary and tertiary payers will be incorrect. Medical professionals should always find ways to improve the various areas of the revenue cycle while continuously monitoring the process which is not only limited to maximize the reimbursement but also stay in compliance with the proper billing guidelines.


When a payment posting is done correctly, the revenue cycle in the medical billing process thrives. With improved cash flow from collections, problems being spotted and solved quicker than ever leads the medical billing process to run smoothly. Issues in the billing process if addressed quickly, secondary and tertiary payers will be billed accurately and thus patients will receive the statements that increase the efficiency of the medical billing process.

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