FPD blogs

Medical Billing Basics: Claims, Codes and Common Mistakes to Avoid

Written by James Archibald | Feb 20, 2026 1:58:49 PM

In the South African private healthcare sector, the financial sustainability of a practice depends on the accuracy and efficiency of its billing processes. Medical billing is the mechanism by which providers are reimbursed for their services, requiring a precise interface between clinical work and administrative execution. The Higher Certificate in Practice Management offered by the Foundation for Professional Development (FPD) provides a structured educational pathway for practitioners and managers to master these administrative and financial requirements.

The Role of Financial Management in Billing

FPD’s Financial Management module covers the fundamental practices required for effective decision-making and the management of financial resources. This includes understanding the billing cycle as a core component of a practice's cash flow. Students in the programme learn to perform financial analysis and budgeting, which allows them to identify where delays in claim submissions or reconciliations are impacting the facility's financial health.

By mastering these concepts, managers can implement systems that ensure every clinical encounter is translated into a timely and accurate claim.

Managed Care and Coding Standards

A significant challenge in medical billing is navigating the complexities of the funding industry. FPD’s Managed Care module delves into the strategies and structures underlying how healthcare is delivered and financed. This module equips participants to navigate the various funding models used by South African medical schemes. A critical part of this process is the use of standardised coding.

Based on the World Health Organisation’s International Classification of Diseases (ICD), ICD-10 codes are an internationally standardised set of diagnostic codes used for claim adjudication, as they provide the medical scheme with the clinical justification for the visit.

Operational Workflow and Strategic Planning

The Strategic Management module and the Operational Management module provide the framework for designing an efficient billing workflow. This involves mapping the administrative journey from patient registration and benefit verification to the final submission of the claim. By aligning these operational tasks with a formal business plan, a practice manager can reduce stale claims, which are claims not submitted within the time frame mandated by medical aids, and ensure that the reconciliation of payments is handled systematically.

Legal Compliance and Risk Management

The Health Law and Ethics module examines the legal framework governing healthcare, including regulations surrounding liability and patient rights. In the context of billing, this includes the ethical requirement to charge fair rates and the legal obligation to protect sensitive financial and clinical data under South African privacy laws.

FPD graduates are prepared to audit their billing practices to ensure they remain compliant with these statutory requirements, thereby protecting the practice from both financial penalties and reputational risk.

FAQs: Medical Billing and Practice Management

1. What is the duration and structure of the Higher Certificate in Practice Management?

The programme is a formally registered NQF Level 5 qualification designed to be completed over 18 months. It consists of eight modules, each delivered in an eight-week cycle on FPD’s online learning platform. Each cycle includes seven weeks of active study followed by a one-week break, allowing students to focus on one subject at a time. This asynchronous delivery model is intended for working professionals, requiring a commitment of about 12 to 15 hours per week to engage with study materials and complete assessments.

2. How does the Financial Management module specifically assist with billing errors?

The Financial Management module provides students with the technical skills to conduct financial analysis and forecasting within their organisations. In a medical practice setting, this allows the manager to track "denial rates" (the percentage of claims rejected by medical schemes) and investigate the underlying causes, such as incorrect coding or missing patient data. By applying the budgeting and risk management principles taught in the module, managers can implement quality control checks that identify errors before a claim is submitted, thereby improving the practice's "first-pass" payment rate and ensuring a more predictable cash flow.

3. Why is the Managed Care module necessary for someone handling billing?

The Managed Care module is essential because it explores the intricate structures, policies, and challenges that shape how healthcare is delivered and financed in both the public and private sectors. Students gain an in-depth understanding of the different approaches to healthcare regulation and the socioeconomic factors that impact how medical schemes adjudicate claims. This knowledge is required for practice managers to effectively communicate with funders, appeal rejected claims, and ensure that the practice's billing policies are aligned with the current requirements of the managed care environment.

4. How does the Health Law and Ethics module help in the daily billing cycle?

The Health Law and Ethics module provides a comprehensive understanding of the legal frameworks and ethical considerations that intersect within the healthcare domain. This is directly relevant to billing because it covers patient rights, liability and the governance of healthcare data. Managers learn the importance of informed consent regarding costs and the legalities of debt collection and medical aid contracts. Furthermore, the module addresses the ethical dilemmas inherent in healthcare decision-making, ensuring that the practice's financial activities are conducted with integrity and remain compliant with South African health law.

5. What are the admission requirements for this 18-month programme?

To enrol in the Higher Certificate in Practice Management, applicants must hold a National Senior Certificate (NSC) or an equivalent NQF Level 4 qualification. The programme is specifically designed for healthcare professionals in private practice, such as medical practitioners, physiotherapists or dentists, as well as administrative staff who wish to transition into formal management roles. Because the course is delivered fully online through a custom-developed learning management system, basic digital literacy is required, though FPD provides access to an e-library and academic support to assist students throughout their learning journey.