Deborah Parker Mar 11, 2022 1:40:37 PM 6 min read


Revenue cycle optimization is a critical component in the success of any healthcare organization. By implementing and utilizing all features linked to both electronic funds transfer (EFT) and electronic remittance advice (ERA) in medical billing, practices can realize numerous advantages, including expedited cash flow.

What is EFT and How Can it Improve Billing?

Electronic funds transfer, or EFT, allows for the electronic deposit of money directly into a bank account. EFT can facilitate payer and patient payments to your practice without any mailed checks or in-person encounters. This eliminates the time it takes for a check to arrive to your practice in the mail, as well as reduces the time for a staff member in your office to take these payments to the bank for deposit.

Below are several ways in which EFT improves medical billing processes.

  • Generates faster cash flow
  • Improves operational efficiencies
  • Allows for easier identification of services paid
  • Produces digital accounting records
  • Ensures safe and secure payments
  • Reduces paper, printing and postage costs

What is an ERA and How Can it Improve Billing?

Electronic remittance advice, or ERA, is a HIPAA compliant electronic substitute for paper Explanation of Benefit statements (EOBs). An ERA includes the same information as a paper EOB, but it is quicker to generate and helps reduce posting errors.

Below are a several ways in which an ERA improves medical billing processes.

  • Provides quicker receipt of payments
  • Supports earlier detection of claim errors
  • Streamlines the reconciliation process
  • Increases productivity and efficiency with your staff
  • Enables faster processing of secondary claims
  • Reduces paper, printing and postage costs

If your practice is not utilizing these features, or if assistance is needed in setting them up, contact your software billing vendor or clearinghouse.

Debbie Parker is a Managing Director, RCM and Operations at Medic Management Group and oversees the Revenue Cycle Division, which consists of services for Medical Billing, Coding and Provider Credentialing.