Whether you are working in healthcare or have just used a healthcare service, it is likely that you have come across chargemaster software, whether you were fully aware of it or not. The big question related to this all is simply, “What is chargemaster software?” Keep reading to find out!
What is Chargemaster Software?
A chargemaster (which is more or less used as an interchangeable term for chargemaster software) is a type of computer program/electronic file that contains information used in hospital billing. Some of the most common billing information used in this type of file is listed below.
- Charge per item/procedure
- Medical codes
- Revenue codes
- Reference numbers
- Flags for changes or deletions in records
Why Do Hospitals Use it?
Why do hospitals use this kind of software? Mainly, it helps to keep everything standardized and organized. When talking in terms of standardizations, this system ensures that two different people getting the same treatment are not charged different amounts. In terms of organization, the system keeps all of the billing charges in one place, making it easy for hospital billers to keep their records digitalized, rather than having a vast stack of paper files to sort through.
Do I Pay a Chargemaster Fee?
While chargemaster fees/billing help to standardize prices, patients don’t always pay the chargemaster fee. Often times, these fees are higher than what a procedure or item actually costs. This is because hospitals know that insurance companies will pay these fees. So, when patients get their final bills, it is likely that the insurance will cover the chargemaster fee and the patient will be required to pay the actual cost of the procedure or item.
Admittedly, hospital billing and everything involved with it can be extremely complicated to understand. However, chargemaster helps to simplify things for hospital billers. After reading this article, hopefully, it’s easier for patients to understand hospital billing as well.