Web Based
Medical Billing Software

Many people say web based medical billing software is better. We like it and use AdvancedMD for several of our billing service clients. Take a look at the pros and cons. This will help you decide whether a desktop or web based solution is best for your medical office or billing service.

First of all....what exactly is web based medical billing software anyway?

A true web based system or ASP (application service provider) is a system designed for use over the internet. Some companies say their software is web based but it is really client server software which is hosted.

That means the performance (or speed) won’t be as good as a true web based system.

Second...who is a good candidate for web based medical billing software?

  • Any healthcare provider
  • Medical offices with multiple locations and/or 3+ users
  • Medical offices with an outside billing service
  • Medical billing services that want to offer an integrated solution for their clients. The medical billing service handles the billing, the client uses the scheduler, patient recall, forms, scanning, EMR, and other services.

The Advantages

Dramatically Reduced Installation & Maintenance Costs

A web-based practice management and medical billing system doesn’t require a server in the office. In fact, you don't install anything. You just log in through the Internet and the application comes up for your use. No extra hardware, no hardware support fees, no software license fees.

No backups

When you use a web based medical billing software system, the backups are done automatically. Most true web based software services have redundant backup systems. For example, AdvancedMD backs up your data every hour, everyday, and stores the data at multiple locations around the country.

Access Anytime, Anywhere

If you have never worked on web based medical billing software, you cannot fully appreciate the convenience of being able to log into your system from anywhere there’s a computer with high speed internet access.

You could be on vacation in Hawaii and log onto your system. It also means users at multiple locations can work on the same real-time data all day, every day. There's never a need to merge, synchronize, or duplicate. And that means reports are always up-to-the-minute, no matter where you are.


HIPAA security rules require protecting data from unauthorized access. One of the biggest risks is physical access of the data within the office. Good web based medical billing software has the same security used by banks for online transactions.

Pay as You Go

The web based model allows you to pay as you go. As a rule, there is an initial cost for activation and training, then a monthly fee which covers your software, upgrades, hosting, and support.

The Disadvantages

Possession of Data

If you like the warm and fuzzy feeling of having your own data then a web based solution is probably not for you. However, some web based services do allow you to download the data if that is a concern.

System Speed

Some web based software can be slow although that has not been my personal experience. For a small office of 3-5 users, high speed DSL or cable is quite sufficient. Practices with 10+ users might require a T-1 line which adds to the monthly cost.


Some web based software fees are determined by the number of providers, some by the number of users. The cost effectiveness of the web based solution is often dependent on the makeup of the practice; how many full vs. part-time providers and mid-level providers.

As it becomes more affordable, I think you will see web based medical billing software become much more widely used in the future. It especially makes sense for medical billing services so their clients can have access to their data. 

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