How pricing is set for a healthcare organization can have a significant impact on its financial performance. If individual charge items in the chargemaster file contain errors, payment for services could be wrong or denials can occur. These are two critical reasons why it's important to routinely review the chargemaster file.

The chargemaster file is a main component in any third party compliance review, since the healthcare organizations’ reimbursement originates from individual charge items. Ensuring accurate code descriptions and pricing for individual service items is paramount for price transparency. Below are additional reasons to conduct a chargemaster review:

• Keep up-to-date CPT/HCPCS Codes
• Correct Revenue Code assignment
• General Ledger/Department assignment and mapping accuracy for proper cost report preparation
• Remain compliant with billing and coding for services
• Ensure accurate Charge Capture for services performed

Maintaining an accurate and compliant chargemaster file is an on-going process. Periodic internal and external comprehensive reviews are essential duties of the revenue cycle team. Additionally, to properly monitor and update a healthcare organizations chargemaster file, policies and procedures are critical to ensure on-going changes are made. This will help prevent errors in payment and compliance related issues that can arise with incorrect/outdated chargemaster files.