Unformatted text preview: The UMUC facility has decided to undergo a review of its chargemaster to ensure that it meets the above
criteria. In addition to the comprehensive evaluation, one of the other objectives of the project will be to
institute the procedures to ensure that all additions, revisions, and deletions meet the chargemaster
standards. How could the facility measure the success of the chargemaster review project?
Which facility departments should be included on the project team? Describe the role and
responsibilities of each team member?
Who would be the most appropriate project sponsor? Who are the project stakeholders? The charge master is main pricing list of all service and supply charges within an organization. For
hospitals that includes both in and outpatient transactions. Though simply stated managing the charge
master is a very complex job. The charge master's role in the coding process differs from department to
department, and not all codes provided on a claim form are necessarily included in the charge master, as
codes for complex services may need to be developed and reviewed by coding staff (Abbey, 2001).
Charge masters in most places are also used for tracking the usage of resources purchased.
The success of the charge master lies heavily on the quality of organizational leadership and whether or
not it is an administrative priority. Other ways to ensure its success is to create departmental
accountability and ownership, set up consistent, controlled system generation pathways for files,
incorporate reviews into every revenue cycle team meeting, improve pricing fundamentals, establish a
regimented, controlled review process, schedule regular reviews, conduct proper training and
educational resources, improve claim submission through improved customer service and lastly, review,
audit and repeat these steps (Stroudmaster, n.d). A system that is successful has a central chargemaster
team with sufficient time and resources. Measuring the success can also be done by analyzing
improvements in the charge capture and collections, uniform price and volume analysis, and reduced
risk of payer audits and penalties (Barton & Bieker, 2007).
Facility Departments should include but not limited to: Compliance Officer: participates as needed to remove barriers, foster communication, and
provide leadership and direction
Technical staff from department: to share appropriate codes, product descriptions, costs for
services/supplies used in their department
Billing department: ensure appropriate revenue codes for each payer is listed on the charge
description master (CDM)
Finance department: assign organization charges to each line item on CDM. Coordinates the
audit effort, schedules stakeholder meetings, and conducts the actual audit, reports audit
findings, makes the corrections in the CDM, and handles post-audit communications and followups.
IT Department: Make changes to CDM in computer system as necessary
CDM Coordinator: make sure policies and procedures are compliant Contracts Department Rep: managed care contracts subject matter expert. He or she has access
to all relevant managed care contracts, which detail certain contract-specific pricing and coding
requirements (Richey, 2010). Project sponsors would be all healthcare entities with the compliance officer spearheading any audits.
Stakeholders are anyone involved in care from the patients, insurance companies, managed care
organizations and all medical facilities. References:
Abbey, D.C. (2001). Designing and maintaining an effective chargemaster. Healthcare Financial
Management, 55 (3): 50-5. Retrieved from
Barton, S. & Bieker, M. (2007). Super standardization: one health system, one chargemaster. Health
Financial Management, 61 (9): 74-6. Retrieved from
Richey, J. (2010). Conducting a charge description master audit: getting the most value from an internal
review" Journal of AHIMA 82: 28-31. Retrieved from
Schaum, K.D. (2011). Who’s making the charge description master? Advance Skin Wound Care, 24(11):
500-2. doi: 10.1097/01.ASW.0000407656.22242.91.
Stroudwater Revenue Cycle Solutions. (n.d). Top 10 chargemaster success fundamentals. Retrieved from
In a minimum of 250 words, explain how fee for service and capitation payment systems affect the
physician’s role as the patient’s agent? Second, the move from cost-based payment for hospital services
to payment on DRGs was expected to change hospital behavior. Discuss what you would have expected
to observe as payment methods changed? ...
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- Fall '18
- Earl Greenia
- Project Management, compliance officer, Richey, charge description master, charge master, Facility Departments