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Medical coding in the healthcare field is a critical part of the revenue cycle. It bridges the gap between healthcare insurers and providers. It encourages the payers’ reimbursements, making precise coding essential. Today, we will take a quick look at the basic medical coding uses.

Basic Medical Coding Uses

The medical coding quality is a critical factor to get reimbursements from the payers. Moreover, it is also extremely important in terms of maintaining the records of patients. It is a vital enabler for health analytics of the population.

Let’s discuss the basic uses of medical coding:

  • Medical codes work as a universal language that providers and payers understand and use for billing and communication. The financial incitement for both providers and payers means that healthcare providers must be accurate and compliant in medical coding for the treatment offered.
  • Another basic use of medical coding is managing population health. Disease patterns are analyzed by using diagnosis codes and these codes also help provide details for health trends at the national level. It allows governments (both state and federal) to plan the resources required to fight prevalent health problems. Moreover, it also helps unveil initiatives for preventing and treating the affected people.

Issue Due to Inaccurate Coding

The most common issue that arises because of inaccurate coding is known as up-coding. It happens when a medical code recorded is different than available in the chart of the patient. You should know that it is a big offense, so compliant and accurate coding becomes essential.

Another issue that occurs due to inaccurate coding is known as down-coding. It happens when a lower-level/cost complexity code is used than the one available in the patient’s chart. Usually, down-coding happens unintentionally. To avoid this issue, you have to make sure that both coders and the clinician are well-educated.

Now you know the basic medical coding uses and some common coding issues. You should keep visiting us to know more about medical coding and medical billing.

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