What Is the Turnaround Time for a Medical Billing Company?

In the world of healthcare, efficiency in billing is just as important as delivering quality patient care. One of the most frequently asked questions from healthcare providers is: What is the turnaround time for a medical billing company? The answer to this question not only influences your cash flow but also determines how smoothly your revenue cycle management operates.

Turnaround time refers to the period between when a service is rendered and when the corresponding payment is received. Its a critical metric that affects provider revenue, patient satisfaction, and overall operational efficiency. A dependable medical billing company should offer transparency, speed, and accuracy when handling this aspect of the billing process.

At Thrive Medical Billing, we understand the urgency providers feel when waiting on payments. In this article, well explore what turnaround time means in medical billing, what affects it, industry standards, and how a professional medical billing company like ours ensures timely and efficient billing.

Understanding Turnaround Time in Medical Billing

Turnaround time in medical billing is not a single fixed duration. Instead, it encompasses several key phases of the revenue cycle, including:

Key turnaround stages:

1. Charge entry and claim submission

2. Insurance claim processing

3. Payment posting

4. Denial resolution or appeals (if necessary)

5. Patient billing and collections

Each phase contributes to the total time it takes for a provider to receive payment for services rendered. A reliable medical billing company should ensure that every step is completed efficiently to minimize delays.

What Is a Typical Turnaround Time?

While turnaround times can vary depending on payer type, specialty, and claim complexity, industry benchmarks provide a useful guideline.

Industry-standard timeframes:

• Charge entry & claim submission: Within 2448 hours after receiving documentation

• Insurance payment posting: 730 days, depending on the payer

• Appeals process: 1560 days, depending on denial type

• Patient payments: Varies widely (often 1590 days)

At Thrive Medical Billing, we typically submit claims within 24 hours of receiving complete encounter data. Our rapid submission process helps shorten the overall turnaround time and accelerates payment.

Factors That Affect Turnaround Time

Several internal and external factors can impact how quickly your medical billing company processes claims and receives payments.

1. Quality of Documentation

Incomplete or inaccurate documentation from the provider can delay charge entry and claim submission. At Thrive Medical Billing, we work closely with practices to ensure all required data is collected upfront.

2. Claim Accuracy and Clean Claim Rate

A clean claim is one submitted correctly the first time without errors or omissions. Higher clean claim rates reduce rejections and speed up reimbursement.

Thrive Medical Billing maintains a clean claim rate above 95%, ensuring fewer delays caused by rejections or resubmissions.

3. Payer Processing Time

Different insurance payers process claims at different speeds. Government payers (like Medicare) may take longer than commercial payers. Electronic claim submission can speed this up significantly.

4. Denial Management

If a claim is denied, the appeals process can extend the payment cycle. A proactive denial management team reduces this delay by resolving issues quickly and effectively.

Thrive Medical Billing boasts an efficient appeals process that minimizes turnaround time even for denied claims.

5. Patient Responsibility

Payments owed by patients often take longer than insurance reimbursements. Sending timely statements and offering payment plans can improve this turnaround.

Our team at Thrive Medical Billing uses automated reminders and flexible payment solutions to reduce delays in patient collections.

Turnaround Time Goals at Thrive Medical Billing

We set clear performance standards for every stage of the billing process to ensure transparency and speed.

Our internal benchmarks:

• Charge entry: Within 24 hours of receiving complete documentation

• Claim submission: Within 1 business day after charge entry

• Payment posting: Within 24 hours of receiving remittance advice

• Denial resolution: Initiated within 3 business days

• Patient billing: Statements generated within 48 hours after insurance processing

By adhering to these targets, Thrive Medical Billing consistently helps practices maintain healthy cash flow and financial stability.

How We Accelerate Turnaround Time

1. Electronic Data Interchange (EDI)

We submit claims electronically to reduce mailing delays and receive faster adjudication from payers.

2. Integrated Practice Management Systems

Our billing software integrates with your Electronic Health Records (EHR), ensuring faster data transfer and eliminating manual entry errors.

3. Real-Time Eligibility Checks

We verify patient insurance coverage before claim submission, reducing eligibility-related denials and delays.

4. Automated Workflows

Automation tools streamline tasks like claim scrubbing, denial tracking, and follow-ups, reducing the need for manual intervention.

5. Proactive Communication

We communicate regularly with both providers and payers to resolve discrepancies quickly and keep the billing process on track.

Thrive Medical Billing leverages these tools to offer best-in-class turnaround times that help practices get paid faster.

Measuring and Monitoring Turnaround Time

Turnaround time is more than just a targetits a measurable KPI that can reveal strengths and weaknesses in your revenue cycle. A reputable medical billing company should track and report this metric to clients regularly.

Metrics we track at Thrive Medical Billing:

• Days in accounts receivable (AR)

• Percentage of claims paid within 30 days

• Denial rate and resolution time

• Time to post payments after receipt

• Patient collection cycle times

We provide monthly reports and real-time dashboards so providers can see exactly how efficiently their billing is being managed.

The Cost of Poor Turnaround Time

Delayed payments dont just hurt your bottom linethey can affect your ability to pay staff, invest in new technology, or expand your practice.

Risks of slow turnaround:

• Increased AR days

• Reduced cash flow

• Higher denial rates

• Greater patient dissatisfaction

• More time spent on administrative tasks

If your current medical billing company is not meeting industry benchmarks or helping you improve turnaround time, it may be time to reevaluate your partnership.

Choosing a Billing Partner That Prioritizes Speed and Accuracy

Not all billing partners are created equal. When evaluating or switching to a new medical billing company, ask specific questions about their turnaround times and performance metrics.

Questions to ask:

• What is your average time for claim submission after receiving encounter data?

• How quickly do you resolve denials?

• Do you offer real-time reporting on AR and collections?

• What is your clean claim rate?

• How do you handle patient billing timelines?

At Thrive Medical Billing, we welcome these questionsand were proud of the performance standards we uphold.

Conclusion

Turnaround time is one of the most important indicators of an effective and responsive medical billing company. It affects everything from cash flow and profitability to provider and patient satisfaction. Shorter turnaround times mean faster payments, fewer denials, and a more stable financial future for your practice.

At Thrive Medical Billing, we take a proactive, technology-driven approach to minimizing turnaround time at every stage of the billing process. Our systems, people, and processes are built to deliver accuracy, speed, and transparencyso your practice can thrive.

If your current billing partner is leaving you waiting or unsure about when youll be paid, its time to explore a better solution. Partner with Thrive Medical Billing for industry-leading turnaround times and a commitment to your success.