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What is Chargemaster?
Chargemaster, also known as charge description master (CDM), is a list of all items billable to a patient or to a patient’s health insurance provider. Hospitals and physician practices utilize the Chargemaster to analyze service costs, volume, and revenue, making it a cornerstone of the healthcare revenue cycle. At MedCom Solutions, we offer Chargemaster management to help you see your data clearly and accurately.
The Chargemaster includes the following components for each service offered by the healthcare facility:
- Item number
- CPT or HCPCS code
- Item description
- Revenue code
- The charge amount
- Alternative CPT or HCPCS code, if needed
- Department designation
- Ledger number
Accurate chargemaster prices are essential for hospitals to determine and negotiate reimbursement rates with payers. Currently many patients do not see the chargemaster rate unless they are uninsured and required to pay the full price. However, due to new price transparency regulations and escalating patient responsibility, an increasing number of patients will begin to shop and compare chargemaster prices prior to scheduling services. Ensuring the chargemaster is adequately maintained is essential for both patient and hospital.
Chargemaster management is necessary to ensure the hospital is compliant with government pricing regulations, as well as making sure all services are accurately charged and paid for. Without all of this data in place, the hospital may not receive the reimbursement they need to continue to stay open.
For more information on the Chargemaster and chargemaster solutions, contact MedCom Solutions today at 1-800-449-8601.