Hospital Billing System

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22 March 2016

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Chapter 1 The Problem and Its Background


Mataas na Kahoy Community Hospital is a newly opened establishment and has been operating for only three months, that is why nearly half of the method/work procedures are conducted manually, may it be on the patient’s record of admission, on the inventory of the medicines and on their billing system.

Since there is no technology used, existing billing system of the hospital is operated manually. The billing staff fills-up a printed billing form with the price based on various treatments and facility and equipment used by the patient. The staff manually computes the total bill with the use of a calculator. This procedure is very time-consuming, inconvenient, and prone to error. Total bills have to be rechecked/recomputed several times to ensure accuracy and avoid incorrect information. Thus, the staff has to repeat all the computation from the start. Hospital’s copy of the patients’ bill is kept on a file folder, arranged by the date when the patient has been discharged, in their record section and when a patient requests for a copy of their bill, the staff has to manually browse the needed record through the entire file folder. Page 1 of 43

Based on the facts stated by the hospital’s billing staff, the proponents believe that this current system is not effective and efficient to the staff in generating the bills. That is why the proponents proposed a system because they believed that the establishment needs to have an efficient automated billing system. For the improvement of the manual system, the proponents proposed a system to make a program which interface contains the features found on the billing form. When the program with built-in formula for the computation is integrated to the system, the manual computation on a calculator will be eliminated. Unlike the manual system, where the billing staff writes the price of the patient’s treatment on the billing form, now the staff just has to enter the patient’s fee on the program and it will automatically compute for the total amount to be paid.

The system doesn’t need to recheck the bill computation for several times. Thus, the automated billing system conserves more time and no errors will be generated. Another advantage the proposed system gives is when a patient requests for a copy of their bill, the system has the ability to have an easy access on the record of the patient’s bill. This is made possible through the presence of a database which consistently updates records on every transaction. Instead of browsing the file folder at the Record Section, the billing staff just has to enter the name of the patient on the system and the system will check for the record on the database and it will list all the billing information of the patient. Upon having a more convenient system, the task of the billing staff is lessened and with a

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secured database, there will be an easier access on the record of the patients’ bill anytime.

Statement of the Problem

1. In what way can the bills be calculated in a faster and accurate manner? 2. How can staff access the billing records easily? 3. How can staff assure that the reports / records of patients are highly secured? 4. How can the records be updated automatically whenever there will be changes into the patient’s information?


1. To create a system that can compute bills in a faster and accurate manner. 2. To develop a system that enables the user to access patients’ records easily. 3. To create a system connected to database which can guarantee a high level of security for the patients’ records. 4. To make a system that can update records automatically every time that there is information to be modified. Page 3 of 43

Significance of the Project

After identifying the hospital’s problem regarding their billing system, the proponents has come up to the idea of improving the billing system to be a more efficient and effective system. The proponents proposed an automated billing system for the hospital which will benefit the following:

The Hospital. Since the proponents is proposing for a new and improved billing system, the hospital will surely benefit from this especially when everyone knows that the community hospital is already technology-dependent in all their facilities and services. It will gain the trust of everybody and because of that; the hospital’s income will be greater than expected.

The Hospital’s Billing Staff. The proposed system will benefit the billing staff/s since the computations will be done by the system itself. The formulas are already in the codes so it is not a need for the staff to compute the bills manually. It can make his/her work faster and at the same time, he/she can ensure that all the computations done by the system are accurate and there are no things to be worry about.

The Patients/Customers. They can also benefit from the proposed system because they can assure that the bills that they will be paying are Page 4 of 43

computed correctly. Another thing is that since the computation of bills is now automatic, patients can eventually get their bills faster than expected.

They will no longer wait for a long time just for their bills to be computed.

Future Researchers. They will benefit in such way that they can consider it as a reference for their research. It can also be an example for them in creating their own system.

Researchers. The researchers will benefit from the system, too. This may be a preparation for them to conquer the IT world in the near future. It will no longer be hard for them to create reports, system analysis, system design, etc., because they are now trained in doing such tasks.

Scope and Limitation

The proposed billing system includes all the computations of a patient’s bill – those who are confined (in-patient), and those who just go to the hospital for their check-ups (out- patients). All the patient’s records will be stored on a secured database. There will also be a database for the available rooms for each room type to know whether a specific room is already occupied or not. To ensure the security, there will be an authorization for the user. Only the billing staff and Page 5 of 43

the head of facilities may have the accounts for the system. A log-in form will be made to ensure that only authorized users are the ones who will use the system and access all the billing records. When pertaining to records, it includes all the patients who pay for any service done by the hospital– in-patients and outpatients. It will also generate a financial report that is to be given to the hospital’s head of facilities. However, its database is only for the record of the patients’ bill, the system does not provide an inventory of the medicines in the hospital’s pharmacy and the facilities and equipments used. It means that the billing staff must have a copy of the prices of the medicine and manually enter those on the system. The payment must always be in cash because the system does not cover any payment done either with a credit card or a check. The system does not also cover any process regarding having an appointment with any of the doctors of the hospital.

Definition of Terms

Automated Billing System – the kind of system the proponents is proposing for the Mataas na Kahoy Community Hospital.

Fee(s) – those that must be computed and totaled that are to be paid by the patients / customers.

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Patient(s) – they are the one who will be paying the fees. They are the customers of the hospital.

Hospital Staff(s) – they are the users of the system. They will be the one who will enter the fees on the system.

Head of Facilities – the one who will receive the reports that will be generated by the system.

Credit Cards – can be used for payment especially when the bill is too expensive to be paid by cash.

Calculator – the material used to compute the fees used by the patient on the manual billing system.

Database – this will serve as the storage of the patients’ bill information. This will keep all the patients’ bill records to be able to have an easy access with it whenever a record will be searched.

In-patients – patients that are confined in the hospital. Out-patients – those patients who only go to the hospital for a check-up.

Radiology – the laboratory examination done with the use of x-ray machines.

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This chapter discusses the Data Flow Diagram (DFD) of the existing billing system of Mataas na Kahoy Municipal Hospital and the proposed system. This chapter also covers the Operational Framework of the proposed system.

Operational Framework of the Proposed System

Fig. 2.1 – Illustration of the Operational Framework of MnKCH Billing System

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MnKCH(Mataas na Kahoy Community Hospital) Billing System is a software that
provides a faster and accurate computation of patients’ bills. All the entered information will be stored on a database. The database will then create reports that are to be viewed by the head of facilities and the hospital’s director.

Data Flow Diagram (DFD) of the Current System

Fig. 2.2 – Illustration of the Context Level DFD of the existing system

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Fig 2.3 – Illustration of the Level 0 DFD of the existing system

The current billing system of Mataas na Kahoy Community Hospital is operated manually. In this system, there are procedures whenever a patient is going to pay. The first step is the billing staff will write the entire treatment fee of the patient on a printed billing form. After all the necessary medications and treatment fees are written, the billing staff will now compute the total of the bills with the use of a calculator. After checking the computation twice, the patient will

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be able to get a copy of this billing form as a receipt. Another copy of each billing form of both outdoor and indoor patients’ are kept on a file folder for the hospital’s copy. These billing forms are arranged by the date of discharge of the patient. The hospital also provides a Record Section Room for their important documents like the billing forms and whenever a patient is going to request a copy of their billing form, the staff will browse the file folders.

Data Flow Diagram (DFD) of the Proposed System

MnKCH Billing System is the name of the proposed automated billing system of the Mataas na Kahoy Community Hospital. To use the system, the user (or the billing staff) is required to fill-up a log-in form for security purposes. The log-in details of the user is now stored on the Admin database. In this case, the user may now access the system anytime just by logging in into the system. After logging in, the staff can now enter all the treatment details used by the patient (in-patient / out-patient). After entering all the details, the computed total bill will automatically be generated at the bottom of the billing form. A printed billing statement will be given to the patient as his/her copy. She/he will pay the desired amount to the billing staff. After receiving the payment, the staff will print a receipt that will be given to the patient. During the printing process, the database will be automatically updated since it is connected to the program. The bill information will now be stored on the Patient’s bill records/ database. After Page 11 of 43

printing the receipt, a report containing the information from the newly entered treatment details can be viewed and printed to be submitted to the head of facilities.

Whenever a patient requests a copy of their bill records, they may ask a copy from the staff. The billing staff will just enter the name of the patient on the search box of the system and the patient’s record will appear on the screen. It is now ready to be printed and then ready to be given to the one who requested it.

Fig. 2.4 – Illustration of the Context Level DFD of the proposed system

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Fig. 2.5 – Illustration of the Level 0 DFD of the proposed system

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3.1. Welcome Menu The welcome menu shows the hospital’s logo together with its name. There is a button which is for log-in purposes.

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3.2. Log-in Form The log-in form is used to authorize people who may use the system.

3.3. Log-in Failed

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The illustration above will be the look of the system whenever the user entered incorrect username/password.

3.4. Main Menu Whenever the logging in of the user to the system is successful, the main menu will appear.

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3.5. Menu – Add – Patient Info of In-Patient This will be the form look like whenever the user will add a patient that will be confined (in-patient).

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3.6. In-Patients’ Patient Information Interface After selecting the Add In-Patient’s Information, the above form will appear. The form will require the user to enter some basic information of the patient. The system will also require the user to select the room type wanted by the patient. After selecting the room type, the user needs to search for the available rooms through the search button.

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3.7. Selecting Room – Room Type: Ward This form shows the rooms / room no. the ward contains. Those disabled rooms are the rooms that are already occupied. It has been disabled to avoid inconsistency. At the upper bottom of the form is a textbox that will automatically shows the selected room for the patient. Once the user is done selecting the room for the newly admitted patient, he/she must click the OK button to validate the selection.

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3.8. Selecting Room – Room Type: Semi – Private

3.9. Selecting Room – Room Type: Private

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3.10. Completed Patient Info Form After clicking the OK button of the previous form, it will automatically return to the patient’s info form. The form that will appear is now a complete patient information form that may now be saved.

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3.11. Menu – Add – Patient Info of Out-Patient This will the form look like upon selecting the Add Out – Patient’s Information.

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3.12. Out-Patient’s Information Interface Since out-patients are those who have just gone to the hospital for their check-ups, the form don’t need to have the “Date and Time Admitted” feature. Instead, there will be the date of check-up.

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3.13. Adding In-Patient’s Computation

When a patient will be discharged, his/her bills must be computed. The form above shows how it looks like when the user selects a new computation for the in-patient.

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11, 800.00

3.14. In-Patient’s Billing Form This is the billing form of the in-patients. All the information has been included to the form. Those fees that are highlighted with color grey are fixed charges. It has been made as read-only to avoid editing of the fixed charges.

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3.15. Adding Out-Patient’s Computation

This is the illustration of what the system will look like after selecting the out-patient’s computation.

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3.16. Out-Patient’s Billing Form

Above is the out-patient’s billing form. At the bottom is a button named “Print”. If the user click the Print button, it will view the print preview.

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3.17. Print Preview

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After computing the bills, and after clicking the button on the former form,
the print preview will appear. In this feature of the system, the user will be able to see the printed form of the patient’s bill statement.

3.18. Menu – Search Record

It will be what the system look like whenever a record is to be searched.

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3.19. Search – All Records Upon clicking the Search Record, all records will appear at first. There is a text box on the upper right of the form. There, the system will let the user enter any of the details of the patient he/she is searching.

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3.20. Search – Date Discharged Any information about the patient may be entered on the search box. For example, is the date the patient had been discharged. The date may be typed on the search box and upon clicking the button, the system will show all the possible results.

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3.21. Search – Date Admitted

Another example, is the date the patient had been admitted. All the possible results with the keywords the user have entered will appear on the form.

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3.22. Search – Last Name Another patient’s information that may be entered on the search box is the name of the patient. Once the staff entered the name of the patient, it will automatically be shown by the system.

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3.23. Menu – View Report Viewing reports is the feature of the system that is enabled both for the billing staff and the head of facilities. After selecting the view report, the system will be directed to another page which is the report itself.

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3.24. Monthly Report

This will be the generated report by the system. It may be printed by any of the billing staff and the head of facilities for some reasons.

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3.25. Menu – Exit

This is the menu form wherein the selected action by the user is exiting the system.

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3.26. Exit – Confirmation

If the user selected the exit feature of the system, a message confirming the user’s choice will appear. If the user clicks the “Yes” button, the system will eventually close. However, whenever the user click the “No” button, it will go back to the main menu of the system.

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Chapter IV Implementation Strategy

This chapter discusses the implementation model to be used in the MataasnaKahoy Community Hospital. This includes implementation model, and gradual processes of implementation like installation and training and staff development.

Implementation Model For the application of new system to be implemented, it is very important to choose the right model. Each system requires different models. After the analysis of the existing system, the proponents chose the Direct Installation (Cutover). A cut-over implementation happens in a single, major event. All modules are installed across the entire organization all at once, more or less. After the planning activities have been successfully executed, the old system will be turned off, and the new system will be launched. At this point there is no turning back. The new system, which is the automated billing system, will replace the old manual billing system. The most common criticism is the risk factor; there are a number of things that could go wrong in an instant changeover. However, the implementation is quick and less costly than a long, drawn-out phased approach. Page 38 of 43

Figure 4.1 – Direct Cutover Implementation

Advantages of Cut-over implementation: 1. Implementation time is shorter. 2. Costs are much lower than a long, drawn-out implementation. 3. Users only need to be train on the new system, not for the changeover period. 4. Implementation happens on a single date. Conducting System Implementation There is a risk factor upon replacing directly the manual system, with the automated one cause things could turn out wrong within a rapid change. Because of this, careful system installation and proper training of end-users is an indispensable part of IT service to provide good system maintenance.

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First task is to install properly the proposed system program on the hospital’s personal computer used on cash transactions. Upon installation, proponents must ensure that all files (e.g. exe files, documentations, etc.) are well copied and stored on a secured folder because improper installation of the program may lead to system errors. After the successful installation of the software is the turn to introduce it to the end-users. The proponents must certainly offer to conduct all necessary trainings the end-users needed. Since they made the software, introduction and familiarization of the new system to the end-users must be conducted effectively.

This orientation style training includes explanations and manual steps on how to operate the new system starting from the very simple parts like specifying all the program features and define the function of each up to the most complex ones like how to troubleshoot the program whenever an incorrect data will be entered. Proper hands-on training will be provided by the proponents for a span of one week to aid the end-users if ever a major problem occurs. This includes proper use of the system together with resolving possible errors that will occur throughout the run time of the program. On the succeeding weeks, the proponents would just have to visit and observe the flow of progress with the system and the end-users for three to four times a week.

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This chapter includes the conclusions of the study together with the recommendations from the researchers. This chapter aims to determine and analyze the significance of changing the existing billing system of Mataas na Kahoy Community Hospital.


After the analysis and study, the researchers came up with the following conclusions:


The existing system, which is a manual billing system, is not an efficient and effective system to the staff and patients of the Mataas na Kahoy
Community Hospital, instead it consumes a lot of time and effort.


There is a must to replace the current system with a new and improved billing system.


The hospital’s billing staff and the head of facilities are demanding for a new system which can be an efficient and

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effective system in replacement for the existing manual billing system. 4. The proposed new system helped making the service faster than former service given by the hospital. Since there is the proposed system, the problem of the hospital with their existing billing system which is that they use lot of time in computing the patients’ bills, had been solved. It is because the new system automatically computes the total bills of the patients without the use of calculator. The new system lessened the time consumes by the staff in computing the treatment fees.


Having the conclusions above, the following recommendations were hereby given by the researchers:

1. The researchers recommend replacing the existing billing system of Mataas na Kahoy Community Hospital. The new billing system will definitely be an efficient and effective system to the staff, because it will compute the bills entered by the staff to the system automatically; and to the patients of the Mataas na Kahoy Community Hospital,

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because since the computations of bills will be done automatically, they will no longer wait for a long time just to have their bills computed. 2. The researchers also suggest that the system must be connected to a database for the storage of the patients’ records. With the database, the reports that must be given to the head of facilities will be generated faster. The reports will also have a more presentable look than the former reports the existing system had produced. 3. Another recommendation the researchers can give is the purchasing of another computer to implement the new system. It is due to the fact that the new billing system is an automated system and may just only be used through computers. There are many brand new computer units which costs less than others. It may help them to make their work easier and faster.

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Cite this page

Hospital Billing System. (22 March 2016). Retrieved from

"Hospital Billing System" StudyScroll, 22 March 2016,

StudyScroll. (2016). Hospital Billing System [Online]. Available at: [Accessed: 4 June, 2023]

"Hospital Billing System" StudyScroll, Mar 22, 2016. Accessed Jun 4, 2023.

"Hospital Billing System" StudyScroll, Mar 22, 2016.

"Hospital Billing System" StudyScroll, 22-Mar-2016. [Online]. Available: [Accessed: 4-Jun-2023]

StudyScroll. (2016). Hospital Billing System. [Online]. Available at: [Accessed: 4-Jun-2023]

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