(919) 477-5152Current Procedural Terminology (CPT) refers to numbers that are assigned to the services that patients receive from healthcare providers. For example, a blood test has one code while a routine doctor’s visit has another one. CPT codes help track and bill a variety of medical services and allow insurance companies to determine how much to reimburse providers. Let’s dive deeper into what CPT coding is and how it benefits the medical billing industry.
History of CPT Codes
CPT codes made their debut in 1966 by the American Medical Association (AMA). Originally, they were only intended to describe different surgical procedures. Over the years, however, they have evolved and now include a plethora of medical, diagnostic, and surgical services. Today, they are a vital component of the medical billing process and help ensure medical providers are appropriately reimbursed for the services they provide. WIthout CPT codes, there would be a much greater risk of inaccurate billing, safety concerns, fraud, and compliance issues.
Benefits of CPT Codes for Medical Billing
Medical billers assign CPT codes to patient records. This ensures insurance companies know exactly which services were performed so they can decide how to pay for medical facilities. The most noteworthy benefits of CPT codes for the world of medical billing include the following:
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Improved Accuracy
Without a standardized coding system, it would be difficult for medical billers to ensure the accuracy of their work. CPT codes inform insurers of what services and procedures were performed so they can compensate healthcare facilities correctly. If a medical biller uses the code for a heart surgery, for example, the provider will receive a payout for that specific surgery. There won’t be any confusion as to what type of surgical procedure was done or what type of payout is required.
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Streamlined Research
Research and patient care go hand in hand. Researchers may use CPT code data to look for trends in the various services that medical organizations provide. They can then get a better idea of where there is room for improvement and how they may improve the quality of patient care.
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Increased Patient Safety
Safety is a top priority for patients and medical providers alike. CPT coding can make it easier to find potential inconsistencies and errors in patient care. The result is reduced medical errors, safer treatments, greater peace of mind, and improved patient outcomes.
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Reduced Fraud
Unfortunately, fraud is not uncommon in the U.S. healthcare system. With standardized CPT codes, however, it can be easier to identify and prevent fraudulent claims. CPT codes may reduce the risk of insurance payouts for medical services that were never actually performed.
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Greater Compliance
All healthcare organizations must adhere to certain local and national laws and regulations. CPT codes can help them minimize compliance risk and avoid serious consequences, such as hefty fines and a damaged reputation.
The Future of CPT Coding
CPT coding has significantly evolved since it was first introduced in 1966. There’s a good chance that changes to this coding system will continue as the years go on. Routine revisions and updates are constantly being made to ensure relevance and accuracy. Since artificial intelligence (AI) is a growing trend in healthcare, it may also be incorporated into CPT coding in some way. Despite this, we’re confident that a human touch will always be required in the medical billing industry.
Contact Fast Chart Today
If you have questions about CPT coding and how it benefits medical billing, we encourage you to reach out to our team. Fast Chart is well-versed in the complex yet important CPT coding system and looks forward to hearing from you!