Memorandom Essay

454 Words2 Pages
Memorandum To: Jeff Sharpe: Chief Financial Officer From: Cheryl Powers: Director HIM Date: 12/5/2012 Re: Chargemaster Maintenance A current and accurate chargemaster is the foundation for a hospitals survival in today’s financial world. With healthcare changes come updates and regulation changes that must be kept current to produce the reimbursement revenue for our facility to maintain and prosper. In order to achieve this we must determine where the best balance of cutting and adding limited resources would be to our benefit. At the risk of a few to save the many, I propose the chargemaster maintenance be completed on schedule for the upcoming year due to the following reason below. As stated above the importance of a facility to receive reimbursement comes from maintaining the charge description master (CDM). The moment the patient is rendered a service and order entry produces the unique identifier, it triggers a charge from the CDM to the patients account. The CDM houses the price list for all services provided to patients. It contains revenue codes, HCPCS codes, service description and price/charge for services and procedures. The fines and penalties alone for fraud/erroneous claims due to an inaccurate CDM would cost more than actually maintaining it to begin with. A CDM committee should be comprised to fulfill the overall maintenance which will contribute to the accuracy and quality of not only the maintenance itself but the document database and review process as well. Having someone from each department on the committee will assure greater accuracy within their area of expertise. The CDM should be reviewed periodically and at a minimum annually due to annual code updates and facility changes. Code changes need to be communicated to the ancillary departments so that proper education can be provided. When new services are introduced within our

More about Memorandom Essay

Open Document