What are the two types of billing in medical billing?

• A. Hospital billing and clinic billing.
• B. Facility billing and professional billing.
• C. Outpatient billing and inpatient billing.
• D. Electronic billing and paper billing.

Answer: (B)

In medical billing, the two main streams are facility charges and professional charges. Facility charges come from the institution itself and cover what the hospital or clinic provides in terms of space, equipment, nursing care, room and board, and other facility services. These are typically billed on the facility claim form (UB-04) using revenue codes to indicate the department or service area.

Professional charges are for the clinician’s services—the physician or other independent practitioners’ expertise. This includes evaluation and management, procedures, and other professional services, billed on the professional claim form (CMS-1500) with CPT/HCPCS codes.

Payers often process these as two separate parts of a single encounter or episode, though some rules allow combined payments. The other options describe settings or submission methods, not the actual distinction between the two billing streams.