In which billing system are accounts divided into groups based on how frequently billing occurs?

Cycle billing is a method used in medical billing where accounts are systematically divided into groups based on the frequency of billing cycles. This approach allows a practice to smooth out cash flow and reduce the pressure on the billing department by not overwhelming it with the need to bill all accounts at once. Instead, different groups of patients are billed at different times throughout the month, ensuring that payments are collected regularly and efficiently.

This system contrasts with other billing options, such as monthly billing, which generally sends bills to all patients on a set date each month, potentially leading to inconsistent cash flow. Electronic and computerized billing refer to the technology used for billing but do not inherently indicate how accounts are grouped or scheduled for billing. Thus, the structure and advantages of cycle billing make it the correct choice in this context.