Medical Billing

Are Hospital Privileges Necessary For Medical Billing Providers?

Physicians need hospital privileges as a form of approval to do their job at the hospital they applied for and to admit patients to the hospital they joined. Access to privileges is a critical part of conducting various procedures, including operations, which are usually what hospitals grant individually. This hospital privileges facility needs high credibility and is also a part of the debate on whether medical billing providers need these privileges.

Healthcare billing services providers are specialists who process the healthcare sectors’ administrative section, including billing, coding, and claims filing. Unlike physicians or health specialists, they don’t usually deal with direct patient care, procedures, or treatment.

In this article, we will learn about the hospital privileges and their importance. This article will also give us insight into the privileges needed by various healthcare professionals.

What are hospital privileges?

Hospital privileges are authorities given by the hospital to the practitioners, enabling them to work and admit patients at a specific hospital. The physicians must have these permits to do certain medical operations like surgeries, which each hospital is willing to give. Many other healthcare professionals, including insurers, medical billing providers, and paramedical staff, also need hospital privileges to carry out their roles.

Types of Hospital Privileges

There are three primary types of hospital privileges:

Admitting Privilege

The grant of admitting privileges allows a physician to directly recognize the patients to a hospital without the need to disturb the emergency department. Using the same hospital, clinicians with admitting privileges can approach the care as a holistic plan and team up with hospital staff as required.

Courtesy Privilege

This privilege assigns a physician the right to work with hospitals by admitting patients but not necessarily giving them the mandate to treat the patients in the hospitals. Physicians can usually visit an admitted patient and share their opinions of this patient’s medical care as a courtesy.

Surgical Privilege

This service especially concerns outpatient physicians performing surgical procedures. It allows for booking the operating room in the hospital or surgery center where the surgery can be done within the hospital facilities.

The Role of medical billing providers

Medical billing service providers are key players in the healthcare system, ensuring that healthcare providers receive the reimbursement amount they deserve for the services they have provided. They will ensure the procedures are correctly coded, submit the claims to the insurance companies, and trace unpaid claims.

Hospitals must list trustworthy medical billing services and choose the best one for carrying out finances. Medical billing providers should also go through the medical credentialing process to get the licenses of qualified professionals. Hospitals only deal with medical billing providers with the best expertise and no fraudulent records.

Hospital Privileges and Medical Billing Providers

Among many options, typically, a majority of medical billing providers do not need hospital privileges. Workers’ day-to-day work is administrative, as they do not directly deal with the patient or hospital infrastructures. However, there are some situations where hospital privileges may be beneficial or necessary for medical billing providers.

1. Access to medical records

Medical provider billers may be given visitation privileges to assist in coding and coding charges for the procedure performed.

2. Collaboration with physicians

For the others, medical billers might need to work very closely with the doctors or other healthcare providers who have the privilege of access to the hospital.

3. Credentialing requirements

Several hospitals health care providers can set their medical credentialing requirements, which medical billing providers must follow before they can sign contracts with those facilities. It may include having valid credentials and an active residency permit.

4. Specialized services

If a medical billing supplier is providing some services related to surgical procedure coding, the hospital’s privileges may be needed to ensure that they are well-equipped with the knowledge of procedures and connected to any hospital resources.

5. Participation in Hospital Committees

Some hospitals will allow medical service billing providers with privileges to join hospital committees, e.g., the billing or compliance committee, where the facility will get opportunities for collaboration.

6. Professional Development

The status of hospital privileges may end up providing medical billing service with a way to experience dedicated improvements such as participating in hospital-organized training or conferences.

Essential Considerations for Medical Billing Providers

1. HIPAA Compliance

Hospitals and physicians must comply with HIPAA and other personal privacy regulations while working with medical billing suppliers. Therefore, one of the key elements is to safeguard and limit access only to authorized users.

2. Continuing Education

In this intricate procedure, medical billing is dogged with frequently updating new codes and standards. Medical billing providers must be competent, and thus, they should be up-to-date with current developments. They also should have extra knowledge obtained through continuing education, which is helpful in their jobs.

3. Professional Associations

Belonging to professional bodies, like the American Association of Professional Coders (AAPC) and Healthcare Billing and Management Association (HBMA), would open up doors for medical billing providers for the availability of valuable resources, networking, and the wanted access to the latest development in the sector.

4. Technology

Technology is the primary factor that makes medical billing providers. EHR and electronic billing software are precisely the two that one can mention as examples of the use of technology. Keeping current with all relevant technology-related and software compliance applicable industry standards should serve the purpose.

Process of getting hospital privileges

The process of obtaining hospital privileges can vary from one hospital to another. Still, generally, it involves several key steps:

1. Credentialing

While a medical biller has the right to achieve privileges at the hospital, their priority is to go through the medical credentialing process initially. This is when potential candidates submit their résumé and other documents, and their qualifications and experience are thoroughly reviewed.

2. Review of hospital bylaws

Every hospital addresses what hospital privileges individuals can be granted as part of its own self-governing bylaws. The medical billing professionals must check the credentialing physician’s contract bylaws to know the eligibility standards and requirements regarding the privileges.

3. Application process

When they have earned the credentials and been thoroughly exposed to the hospital bylaws, the medical billing providers can now process their applications. Usually, this application process would include jurisdiction of a detailed application with an individual’s education, background, and courses attended.

4. Documentation of competency

Most medical facilities request medical billing experts to understand their knowledge through their experience and capability to tender unique medical procedures and services. An example shall include medical procedure documentation, a health certification, or a peer recommendation.

5. Review and Approval

Following the completion of the application, the medical billing providers should wait for the hospital’s credentialing committee for the final decision. The duration of this process is very different; it can be around several weeks to a few months or a year, depending on the hospital’s review process.


Physicians do not need to be hospital-privileged to be a medical biller; however, it may help or be required in some specific situations. Medical billing providers perform an integral function in the healthcare system by ensuring those in the healthcare field get adequately paid for the services provided. It involves proper medical services and codes, filing claims to insurance companies and unsettled claims, following up with regulations, and keeping up-to-date with changed and advanced industrial trends.

By knowing what needs to be done in the hospitals or healthcare facilities and what changes are emerging in the industry, medical billing providers can provide the best service to their clients that, in turn, helps ensure that the healthcare needs of patients are met most effectively.