Healthcare Provider Feedback Improves Outpatient E/M Billing and Coding in Otolaryngology Clinics

OBJECTIVE: Discrepancies in medical coding can negatively impact institutional revenue and result in accusations of medical fraud. The objective of the present study was to prospectively assess the utility of a dynamic feedback system for otolaryngology providers in improving the coding/billing accuracy of outpatient clinic encounters. METHODS: A billing audit of outpatient clinic visits was performed. Dynamic billing/coding feedback, consisting of a virtual lecture and targeted e‐mails, was provided at distinct intervals by the institutional billing and coding department. χ (2) was used for categorical data, and the Wilcoxon test was used to compare changes in accuracy over time. RESULTS: A total of 176 clinic encounters were reviewed. Prior to feedback, 60% of encounters were inaccurately billed by otolaryngology providers, requiring upcoding and representing a potential 35% work relative value unit (wRVU) loss of E/M generated productivity. After 1 year of feedback, providers significantly increased the accuracy of their billing from 40% to 70% (odds ratio [OR]: 3.55, p < .001, 95% confidence interval [CI]: 1.69, 7.29), with a corresponding decrease in potential wRVU loss from 35% to 10% (OR: 4.87, p < .001, 95% CI: 0.81, 10.51). DISCUSSION: Dynamic billing feedback significantly improved outpatient E/M coding among otolaryngology healthcare providers in this study. IMPLICATIONS FOR PRACTICE: This study demonstrates that educating providers on appropriate medical coding and billing policies, while providing dynamic, intermittent feedback, may improve billing accuracy, translating into appropriate charges and reimbursements for services provided.