Medical Coding Software

Medical coding software can be one of the best “tools of the trade” as the ease of technology allows for fast retrieval of information, quick claims processing and decreases the rate of error when coding is done manually. In a study conducted by The American Medical Association, it was found that manual coding cost physicians an average loss of $45,000 annually due to inaccurate coding and use of outdated coding manuals.

Medical coding software provides the distinct advantage of increasing accuracy and processing claims quickly. Some software packages provide for integration of office functions, health records and patient services which allow for savings in processing time, fewer denied claims due to incorrect coding, and labor savings. Depending on the vendor and the functions of the software, the cost to purchase a good software package can range from $500 to $1000.

A study by the American Medical Association reveals that manual coding results in a 24% rate of claim coding error. In real dollars, physicians who rely on manual coding lost an average of $45,000 annually in lost revenues. Coding software helps to gain maximum reimbursement for each claim through more accurate coding and automatically providing updates on code changes, deletions, and modifiers.

Advice on Buying Medical Coding Software

While software for medical coding can be a tremendous resource, the Better Business Bureau and Federal Trade Commission warn buyers to check out medical coding software packages carefully before buying by taking these steps:

• Ask the vendor for a list of satisfied customers.
• Buy a support contract. This is one sign that a company is going to stick by its product and will provide technical assistance for problems
• Consult with other medical coding and billers in your area to learn which software packages they like best.
• Check with the Better Bureau in your area or where the software is sold to learn if there is a record of unresolved complaints against the manufacturer.
• Check the website of the Federal Trade Commission to learn if any suits have been brought against the software company or a home-course in medical coding and billing.

A good principle to follow before buying any medical coding software package is to remember that medical coding is a profession which requires training, education and practice. Buying it can be a wise investment if you proceed cautiously and with your eyes open.

Join our Monthly Medical Career in Billing & Coding Newsletter

Medical Coding Nexus, conceptualized in Feb, 2005, is an online portal which provides up-to-date, pertinent information about medical coding and billing. Copyright @2005 Honlyn Limited All Rights Reserved

By accessing this site , you are agreeing to the terms of use .