What Is Medical Coding All About?
Working in the medical industry and not sure why you might need coding? Then, this article is for you.
In the healthcare industry, many working parts behind the scenes enable the industry to operate effectively. And one of these critical parts is medical coding, a crucial aspect of the medical billing process. So, many facilities outsource coding to third-party companies for efficient and accurate medical coding. They understand your unique requirements and give you the best solutions. However, knowing what precisely medical coding involves is crucial before hiring someone. Hence, read on to find out more.
What Is the Purpose of Medical Coding?
Accurate and efficient medical coding is key to success in the healthcare industry. Don’t buy it? Just take a look at the plethora of applications it has.
The Reimbursement Process
Healthcare facilities earn most of their revenues through reimbursements distributed to them via insurance companies. And all healthcare facilities require coders who code all physician-patient encounters. So, these coders take care of coding various things like:
- Diagnoses made
- Treatments given
- Procedures performed
All this data in a properly coded manner helps insurance companies calculate transaction amounts more easily. Hence, it leads to a more effortless flow of funds.
Monitoring Progress and Diseases
Compiling relevant medical data can be an excellent way for medical facilities to track the level of care being provided to their patients. So, in many cases, this data is gathered from medical codes as these codes detail precisely what patients are being diagnosed with and the treatments and/or medications they receive.
Codes can help in:
- Tracking patient visits related to a specific procedure.
- The number of cases associated with a specific disease.
- Tallying the demand for a particular medicine or drug.
Healthcare professionals across the globe also use medical codes to track which conditions are becoming more prevalent.
Research and Funding
Medical studies and research have enabled the medical community to make great strides in the treatment of numerous severe conditions ranging from cancer to devastating childhood illnesses.
Using medical codes, you can easily track the research and test results. Hence, medical codes are extremely helpful when it comes to making progress in the world of treatments and medicines.
Types of Medical Codes
As of today, there are five primary types of medical coding:
Medical coders use these codes to track procedures, diagnoses, and billing accurately.
This code is used to classify everything from diseases to various symptoms meticulously. It also recodifies the classification area of some illnesses and expands the definitions for sexual health.
The codes in ICD-10-CM are more detailed and are especially useful for clinical and outpatient applications because they allow for clarification about the severity of a disease or condition.
This code contains more detailed regulations for procedures and equipment and is used for inpatient settings.
Current Procedural Terminology (CPT) is used to report diagnostic, surgical, and medical procedures to relevant parties.
This code is based on CPT and used for non-physician services.
Medical coding may sound complicated, but it is essential for healthcare facilities. Hence, you can get experienced professionals to do it as you outsource coding. Doing so brings you guaranteed industry success along with efficient record keeping. Additionally, it helps ensure accuracy, which is a key thing in the medical industry.