Are You Updating Your Charge Master Quarterly?

T he chargemaster, also known as the charge description master (CDM), is a comprehensive list of billable items and services that a hospital provides.

It serves as the backbone for billing patients and insurance companies. Over time, facilities may make changes to their chargemaster and may not fully understand the downstream impact of these adjustments. It’s essential that hospitals have the resources on hand to accurately and timely update their chargemaster to ensure proper billing and revenue management.

Why It Matters

1. Reduction of Insurance Billing Denials: Regularly updating the chargemaster helps ensure that billing codes are accurate and up to date, reducing the likelihood of insurance claims being denied due to outdated or incorrect information.
2. Increase in Revenue: By keeping the chargemaster current, hospitals can capture all possible charges for services rendered, ensuring that no revenue is lost due to missed or outdated billing entries.
3. Reduction in Accounts Receivable (AR) Days: An up-to-date chargemaster facilitates smoother billing processes and faster claim approvals, which in turn helps to reduce the number of days receivables are outstanding, improving cash flow.

Navigating the Challenges

Understanding the expectations of payers, knowing when and where to come to the table over these contracts, and managing the financial benefits and risks of chargemaster increases requires years of contract management experience. This task may be particularly challenging for smaller hospitals that lack the experienced revenue cycle management (RCM) staff available to larger providers.

Working with a Partner

MEDTEAM can be an invaluable partner in managing and updating your chargemaster. We offer the expertise to analyze the file build to increase usability, identify missed revenue opportunities, and improve billing accuracy. Our team of experienced professionals can ensure that your chargemaster is not only current but also optimized to maximize revenue and efficiency, helping your hospital thrive in an increasingly complex healthcare environment.

By partnering with MEDTEAM, hospitals can benefit from our extensive knowledge and experience in RCM, allowing you to focus on providing high-quality patient care while we handle the intricacies of chargemaster management.