3 Common Mistakes to Avoid When Shopping for PM Software
Updated March 3, 2025
Originally Published May 26, 2023
A Quick Glance at Practice Management Software
Practice management systems come as robust software packages designed to help medical practices and RCM (Revenue Cycle Management) companies streamline repetitive tasks, improve efficiency through automation, and manage critical functions such as financials, administrative tasks, and patient scheduling. Small and medium-sized businesses often rely on PM software to handle these essential tasks efficiently.
Practice management software can be deployed in various forms. It may be traditional downloadable software, or, more commonly today, it can operate as client-server or cloud-based software. Cloud-based solutions are accessible from any device with a stable internet connection—there's no need for downloads, and they offer the flexibility to work from anywhere.
Some Primary Features of Practice Management Software
Effective PM software should offer the following essential features:
General Billing – Automates key billing tasks such as preparing statements, submitting claims, collecting payments, and sending electronic bills.
Scheduling – Simplifies the creation, editing, and management of patient appointments.
Insurance Verification – Help reduce medical billing errors by providing important insights into patient eligibility. Most systems include card scanner interfaces to speed up the verification process, ensuring efficiency.
Reporting – Assists with Medicare reimbursements and the collection of data needed to stay compliant and eligible for reimbursement.
Shopping for New Practice Management Software: Mistakes to Avoid
Switching to new software can significantly impact your business and patient relationships. Here are three common mistakes businesses often make when shopping for PM software:
1. Not Focusing on the Fundamentals
It's easy to get distracted by flashy features or the latest tech. However, your primary goal should be to find a solution that enhances your workplace efficiency. Before you begin your search, list the essential features that your practice requires. These might include existing features you rely on or new functionalities that could improve your operations.
Consider the following core features:
Color-coded tagging to track claim statuses and data
Automation for repetitive billing tasks
Compliant, real-time reporting tools
2. Overlooking Tech Support
The quality of tech support can make or break your experience with a system. Building a strong relationship with your vendor’s support team will help your long-term success. Try to gauge how responsive they are to questions during the selection process.
Key support features to look for include:
Step-by-step guides and screenshots in their documentation
Screen-sharing capabilities for collaborative problem-solving
Real-time support options, such as phone or live chat support
3. Forgetting to Get a Personalized Demonstration
Each PM software solution has its unique features. A personalized demonstration is the best way to ensure the system meets your practice’s management style and specific needs. Take this opportunity to test the software in a real-world setting and ask plenty of questions.
Things to check during your demo:
Does the system work on your clinic’s computers and mobile devices?
Does it securely encrypt and store patient data?
Does the vendor address all your queries?
Tips to Transition to a Better Practice Management Software
Once you've found a practice management software that suits your needs, it’s time to transition. Follow these steps to ensure a smooth process:
Explore additional offerings – Some software providers offer extras like automated appointment reminders, patient payment portals, or statement services.
Understand the team behind the product – Talk to the vendor’s team to gain insights into their support and development processes.
Learn about software updates – Your PM system will need to keep up with regulatory changes, so ask how the provider handles updates to ensure compliance.
Assess role-specific features – Ensure the system is tailored to the needs of different roles, such as front desk staff, billing experts, and practice managers.
Conclusion
For revenue cycle management companies and medical practices, a reliable practice management software system is essential for managing billing, scheduling, insurance verification, and reporting. Although choosing the right practice management software is crucial, businesses often make the mistake of focusing on unnecessary features or overlooking ongoing support. Prioritize business efficiency, tech support, and system updates, and always test the software before committing to ensure it’s the right fit for your needs.
