Hospital Billing Process Essay

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A hospital billing process begins when an individual comes in for diagnosis and treatment for an injury and is admitted for more than 24hours. The admitting clerk first obtains a person’s demographic such as age, gender, address, symptoms, and insurance information which is entered into a computer system. Once everything is verified by insurance verifier, admitting clerk collects co-payment and assign a patient an account number, which is associated with all charges and payment related to the duties of care. Once a patient is admitted the attending physician dictates history, which includes admitting diagnosis. Then the nurse enters the patient’s medical records and inputs physician orders in a computer. After attending physician supply documentation …show more content…

Outpatient services can be a laboratory, Emergency department, ambulatory surgery center, urgent care and rehabilitation center. When an individual is seen in the emergency department a patient is considered an outpatient unless he/or she is admitted. Physicians visits the patients, perform surgeries, discharge patients from the hospital the same day. Once a patient is discharge the patients’ medical record is sent to the biller who uses the CMS-1500(02-12) insurance claim form for services provided by the physician not by the hospital, then uses CMS 1450 (UB-04) to bill for hospital services. Outpatient billing process requires the CDM to use book volume 1 and 2 ICD-9CM and HCPCS in order to report patient’s condition and services provided. Once that is done the claim is double checked and submitted with the EOB, and the patient receives the remaining …show more content…

DRG groups all discharge cases into one of 25 Major Diagnostic Categories (MDCs) by age, sex and gender it combines diseases and treatment into a code, which then produces a relative weight for reimbursement. DRG was developed by Professors John D. Thompson and Robert B. Fetter in 1977 to help with classification to be used in UR. UR is a utilization review department that certifies a patient’s complaints and meets hospital guidelines to warrant admittance to a hospital. In 2008 DRG was renamed to Medicare Severity Diagnosis-related Group (MS-DRG) which is a more complexed three tiered system, which split payments based on patient severity as determined by major complication/comorbidity (MCC), a complication/comorbidity (CC) or no CC. example of DRG is when a patient has congestive heart failure for several years and is admitted with admitting diagnosis of chest pain, while hospitalized the patient experience atrial fibrillation using the DRG system the biller would use code 121.09 acute transmural myocardial infarction of anterior wall with code 150.9 for congestive heart failure and CC 148.0 atrial

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