What is the main consequence of improper coding?

The main consequence of improper coding is the potential legal issues and financial loss for providers. When codes are incorrectly assigned, it can lead to a cascade of negative outcomes. For instance, improper coding may result in claims being denied or delayed, which affects the revenue cycle and can ultimately lead to significant financial losses for healthcare providers. Additionally, if coding errors are found during audits or reviews, providers may face legal consequences, such as fines or penalties. This can tarnish the reputation of the provider and lead to increased scrutiny from payers and regulatory bodies.

While incorrect coding might also contribute to delayed processing of claims, the broader implications of financial loss and legal repercussions signify a more critical concern for healthcare providers. Patient satisfaction and quality of care are typically improved with accurate coding, as it ensures that the services provided are reimbursed appropriately and help in managing patient records accurately, but these outcomes are not the primary focus when discussing the main consequence of improper coding.