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A medical clearinghouse  is a third party company that takes the claims that the offices or hospitals create and they audit all of these claims for possible errors per the codes that were entered into the claim and then they send in on to file with the insurance company. They get this information from the medical billing software that the office or hospital uses. When the clearinghouse gets the claim, they have all the information that is needed in order to audit, file, and get payment for the medical facility that has processed the claim and performed the service.