Adopting coding automation technology can enhance operational efficiency and improve financial outcomes for health systems looking to optimize their revenue cycle while reducing administrative burden. Healthcare organizations are taking a strategic and phased approach to artificial intelligence (AI) and automation technologies such as computer assisted coding (CAC) and computer assisted professional coding (CAPC), to identify areas for automation while ensuring compliance and maintaining human oversight as necessary.
Understanding the Challenges
Many healthcare organizations still rely on physician-entered coding within their revenue cycle management (RCM) processes, which can be time-consuming and prone to errors. This approach can lead to:
- Higher denial rates due to incomplete or incorrect coding.
- Revenue leakage from missed billing opportunities.
- Increased administrative burden on physicians responsible for documentation and coding tasks that pull them away from patient care and leading to burnout and reduced job satisfaction.
- Delays in reimbursement caused by inefficient claims processing, prolonging the accounts receivable (A/R) cycle.
Implementing Coding Automation Technologies
AI-powered coding technology assists hospital and health system staff with documentation to improve efficiency while maintaining quality control by leveraging AI-driven tools for compliance monitoring and auditing. Physicians can benefit from real-time feedback and education on documentation improvements, leading to better long-term compliance and revenue integrity.
Successful implementation of coding automation emphasizes the importance of cross-functional collaboration to include:
- Engaging physicians to shift the focus from coding to documentation through education that enhances documentation quality.
- Collaborating with coding professionals and revenue cycle teams to ensure streamlined workflows and improved accuracy in the coding process.
- Conducting side-by-side analyses, offering one-on-one training sessions, and establishing open lines of communication to foster trust and transparency among physicians concerned about relinquishing control over coding responsibilities.
Standardizing documentation practices across the organization can also facilitate smoother integration of automation. By developing consistent workflows, healthcare organizations minimize discrepancies in data entry and enhance the reliability of automated systems.
Delivering Measurable Results
Coding automation can reduce the administrative burden on healthcare providers and empower them to concentrate on higher-value tasks, ultimately enhancing patient care.
- Increased clean claim rates: Hospitals and health systems can experience an increase in clean claim rates, resulting in quicker reimbursements.
- Reduced charge lag: By improving the speed at which claims are processed, cash flow improves, providing financial stability.
- Enhanced revenue recovery: Efficient coding reduces denials, thereby optimizing overall revenue recovery.
By adopting coding automation technology, healthcare organizations can greatly improve their clinical and revenue cycle efficiencies while enhancing collaboration and optimizing workflows. Learn more about how leaders at St. Joseph’s Health successfully navigated their coding automation journey. Pediatrics coding denial rates decreased from 34% to 8% and primary care denials decreased from 26% to 9% and clean claim rates improved.
Explore this customer story and their strategic investment in CAPC.
Conrad Coopersmith
