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medical billing coding

Medical billing and coding are essential to ensure medical services get paid correctly. A report by the American Hospital Association says that in 2019, hospitals and health systems in the United States earned $1.1 trillion in revenue, with $963 billion coming from patient care services.

Accurate medical coding and billing ensure healthcare providers receive reimbursement on time and accurately. In addition, the Healthcare Financial Management Association says that mistakes in medical billing can lead to a considerable loss of revenue for healthcare practices. On average, 5-10% of total claims submitted have errors.

Repeating Medical Billing Errors and Ways to Avoid Them?

Medical billing mistakes can have a significant effect on healthcare practices. They can also cause payment delays, denials, compliance problems, and less money coming in. The Medical Group Management Association (MGMA) found that billing errors can make medical practices lose up to 4% of their revenue. These errors can happen at any stage of the billing process, from getting patient details wrong to not filling out claims properly.

Patient Information Errors

Mistakes in patient information can cause claims to be denied or delayed, leading to reduced revenue.

Inaccurate Coding

Coding errors can result in denied claims, delayed payments, and compliance problems. 

Incomplete Claims

Incomplete claims lack necessary patient information, diagnosis codes, or procedure codes. 

Duplicate Billing

Duplicate billing occurs when a service sends bills more than once. 

Failure to Verify Insurance Coverage

Neglecting to verify insurance coverage can lead to denied claims and delayed payments.

Here are Things Healthcare Providers can do to Prevent Mistakes in Medical Billing.

These practices include:

Establish Clear Rules And Procedures

Physicians can follow some crucial steps to prevent mistakes in medical billing. One of these steps is to establish clear policies and procedures. These policies should explain the different stages of the billing process, such as confirming patient details, coding, charge recording, submitting claims, and recording payments.

Updating Fee Schedules Regularly

Hospitals should regularly check and update their fee schedules to make sure they are correct and current. This helps avoid billing mistakes caused by outdated or wrong prices.

Monitoring Denied Claims

Doctors should keep an eye on denied claims to find patterns or trends that contribute to billing errors. In this regard, regular audits can help improve future training and processes.

Educating Patients

Healthcare organizations should teach patients about their insurance coverage and billing procedures. This helps prevent errors like wrong insurance information or patient responsibilities.

Hiring a Professional Medical Billing Service

Some healthcare professionals might find it helpful to hire professional medical billing services to handle their revenue management. These services specialize in billing and can ensure that claims are submitted in a proper way and on time.

By following these best practices, doctors can avoid common billing mistakes and improve revenue management. This leads to better patient care and outcomes and increased financial stability for healthcare practices.

How can you Avoid Coding Errors?

Keep up with the latest coding rules: Stay informed about the latest guidelines and updates.

Get feedback on your work: Ask supervisors and colleagues for feedback to find ways to improve.

Review coding Practices regularly: Review your coding practices to find areas that need improvement and ensure everything is accurate.

How do Medical Billing and Coding Affect Revenue?

Medical coding and billing greatly affect how much money physicians make. When the coding is done correctly, it helps bring in more revenue and keeps the practice financially stable. But if there are mistakes in the coding or missing information, it can lead to claims being denied, causing the practice to lose revenue. Fixing these denied claims takes up extra time and resources.

However, if the medical coding and billing are accurate, it can significantly impact revenue. According to the Healthcare Financial Management Association, proper coding can increase revenue by as much as 10%. This increase happens because accurate coding means fewer claims get denied and payments get processed faster.

Having more revenue is beneficial for doctors in many ways. It allows them to provide better care and improve outcomes for their patients. With more money, providers can invest in new technology, hire more staff, and offer more services. This leads to better experiences for patients and better overall health outcomes.


Medical billing and coding are critical in healthcare. They make sure medical practices get paid correctly. Medical billing is when claims are sent to insurance companies or government programs for payment. Medical coding involves assigning codes to show the services and the patient’s diagnosis.

It’s important to do billing and coding accurately for successful reimbursement and financial stability. However, healthcare providers can achieve this by regularly training their staff, using billing software, and auditing billing processes. These practices ensure that providers receive the right payment for their services on time

Frequently Asked Questions

Medical billing involves creating healthcare claims to submit to insurance companies. These claims aim to get payment for the medical services provided by providers and provider organizations.
Medical coding involves converting healthcare diagnoses, procedures, medical services, and equipment into universal medical codes. These codes are derived from medical record documentation.
Effective coding has positive effects on patient care. Research has shown that patients with comprehensive coding for their chronic diseases receive better care. Provider organizations have also demonstrated better financial performance when their patients’ coding is more accurate.