Why Your Hospital Needs to Have Medical Coding Solutions

When a patient receives medical services at a hospital or clinic, the entire episode is documented and translated into a format that accurately describes the care services provided to the patient. This is then sent to an insurance payer, who processes it and reimburses the provider accordingly. The translation of medical reports into descriptive codes standardized in the healthcare industry is called medical coding. Medical billing and coding is an integral part of the healthcare industry in the United States and the cornerstone of efficient revenue cycles.

The larger a medical organization gets, the more the number of patients it is bound to see every single day. Needless to point out, the medical coding process would have to be highly efficient for all the different treatments, tests, scans, and other services of every patient to be accurately coded. This is where make a big difference. Medical billing and coding software enables the clinical staff to carry out the activities in the workflow in a streamlined way through a digital interface.

Mistakes in coding often result in an insurance claim being denied by the payers. When that happens, the providers must redo the process and send the claim once again to the payers. This procedure costs the providers time, money, and resources. Denied or rejected claims cost precious revenue to the providers. So it has become paramount for hospitals, clinics, and ambulatory care centers to implement medical coding software. There are many advantages to using coding systems in healthcare. Let’s look at some of them -

Coding Audits

As the name suggests, this feature in medical coding solutions helps assess the coding already done. Coding errors are one of the main reasons for claims being denied and are estimated to cost hundreds of millions of dollars to the healthcare industry every year. This functionality in software for ensures accurate coding with the help of automation. Moreover, it also ensures compliance with the process of coding.

To sum it up, coding audits in digital solutions for medical coding and billing minimize or eliminate the possibility of errors and also ensure compliance.

Better Revenue Cycles

As mentioned earlier, the accuracy of medical coding determines the revenues for providers. Mistakes cause delays in payment and sometimes even result in the physicians not getting paid at all. But having robust medical coding solutions ensures that there are no errors in the submitted claims, which ensures that providers get paid on time.

Automated Coding

Automation minimizes or even removes any human intervention from a process. As a result, the possibility of errors or mistakes is eliminated, and the speed of the workflows increases drastically. When it comes to medical coding software, automated coding goes a long way in accelerating the activities in coding, along with maximizing efficiency and productivity. This is an important feature for larger hospitals that might see hundreds of patients every week.


Medical coding is an integral part of American healthcare. It makes sense from a business perspective to invest in good coding platforms as it would reduce overhead and increase productivity. In other words, it results in better revenue cycles.

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