What Is Practice Management Software?

By: Hannah Whiteoak on February 13, 2023

From general practice doctors to specialists, therapists, or chiropractors—everyone working in healthcare needs a practice management system to track patient information, manage electronic health records, and control online billing management. Practice management software is specifically designed to help healthcare providers manage the administrative and operational aspects of their practices, such as appointment scheduling, billing and payment processing, patient record management, and reporting.

In this article, we explain how software can help with practice management and free up more time for medical staff to look after their patients.

What is practice management?

Practice management involves managing administrative tasks such as patient registration, scheduling, tracking, accounting, and reporting. Healthcare organizations can become more efficient and provide better patient care by implementing a robust practice management system.

Practice management software has many useful features that can improve a medical practice’s operations. These include automated billing, insurance coverage and eligibility verification, and medical coding in accordance with various billing code sets. Many software options also make it possible to send automatic electronic reminders to patients via SMS or email, which can help reduce missed appointments.

What is practice management software?

Practice management software is designed to help medical practices operate more efficiently. It can facilitate daily operations, such as administrative and financial tasks, including billing and appointment management. Practice management software can also connect with electronic health records (EHR) software to make patients’ medical information available whenever needed.

What are the types of practice management software?

  • On-premise practice management software: Small medical practices might want to consider on-premise practice management software, which stores all your data on physical servers on your medical practice site. The responsibility of managing these servers may lie with you or be outsourced to an IT provider. On-premise software offers full control over data, but the practice must consider the cost of purchasing or leasing the solution.

  • Cloud-based practice management software: Many medical practices have switched to using cloud-based software, which means the data is stored on a remote server. Users access the system using an internet connection. This deployment type is suitable for large medical organizations with multiple practices.

It's important to note that whenever you are processing medical records and data, you need to ensure you meet HIPAA's rules around data privacy and security. Choosing practice management software can help you meet these requirements.

Benefits of using practice management software

  • Ease of access to EHRs: Practice management software makes it easy for healthcare professionals to find, access, and update EHRs. Streamlining EHR operations means physicians have more time to look after patients. Improving patient information access could also help reduce medical errors and aid in correct diagnosis.

  • Process reimbursements faster: Practice management software can make billing and insurance operations much easier. The software can produce digital reports that include information about insurance remittances and claims. As a result of speeding up insurance claims and billing, practice management software can help with cash flow and improve profitability.

  • Reduce errors in the billing process: Billing errors can cause a lot of problems for medical practices. Practice management software integrates with billing and insurance processes to reduce mistakes through error detection and correction functions.

  • Increase efficiency: By simplifying many processes involved in the day-to-day running of a medical business, practice management software can dramatically increase efficiency. In addition, it can eliminate some tedious administrative tasks, including collecting and verifying documents. Staff can focus on their core roles and deliver better patient care.

Next steps

To find out more about practice management software, a good first step is to use Software Advice to learn about medical software. You can also find many examples of suitable practice management software solutions to help you manage your healthcare business.