By Pamela J. Gallagher
Hospitals and health systems have spent the past decade responding to patient and government demands for increased price transparency, and the demand only continues. While the healthcare industry has made strides in ensuring patients know the cost of their care up-front, consumer expectations are growing to include that hospitals should be able to explain how their costs are determined.
Read MoreBy Pamela J. Gallagher
A hospital’s charge description master (CDM), or chargemaster, is often referred to as the “heart” of the healthcare revenue cycle. It includes codes for every procedure, material used, medication, and service that a healthcare organization provides its patients. It is the structure that drives the hospital, and is the starting point for billing patients and insurers and complying with public reporting. A typical health care system chargemaster may contain 15,000 to 25,000 entries, according to Becker’s Hospital Review.
Read MoreBy Pamela J. Gallagher
For some hospitals, the close of the fiscal year comes with a sense of dread—it’s time to run the gauntlet of another audit.
Though audit requirements vary based on whether a hospital is public or private, for-profit or nonprofit, audits are an inescapable reality for every hospital. The audit process can feel like an irritation, yet another project to add to an already full plate, but audits also bring an opportunity to develop stronger accountability and transparency within the organization.
Preparing for an audit can be daunting, but it doesn’t have to spell disaster for your organization. There are steps healthcare executives can take today to allow a smooth audit process down the road.
Always be prepared.
The best way for your hospital to prepare for an audit is to always be audit-ready. Of course, this is easier said than done, especially if financial credibility and accountability haven’t been made a priority across all levels of the organization. It’s only when you haven’t been keeping up with your finances that an audit is a potential issue for your organization.
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