The Real Cost of Inpatient Claim Errors

Post on 01-Jul-2015

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Over the last decade, the number of facility claims exceeding $100,000 has grown at an unprecedented rate. In 2000, there were three million-dollar facility claims per one million patients in the United States. Today, there are 34 per one million. The average cost of a high-dollar claim has also increased dramatically, from approximately $86,000 in 2000 to $260,000 in 2013.

Transcript of The Real Cost of Inpatient Claim Errors

Duplicate Billing

The Real Costof Inpatient Claim Errors

Identifying Errors

Over the last decade, the number of facility claims exceeding $100,000 has grown at an unprecedented rate.

In 2000, there were three million-dollar facility claims per one million patients in the United States. Today, there

are 34 per one million. The average cost of a high-dollar claim has also increased dramatically, from

approximately $86,000 in 2000 to $260,000 in 2013.

© 2014 Verisk Health

Learn more about how Verisk Health can prevent overpayment at

The Potential ImpactOn average, Inpatient Claim Review can identify $1.2 million in annual savings, based on 1,000 claims per

month and an average of $100 savings per claim.

www.veriskhealth.com/inpatientclaimreview.

Source: Verisk Health

Within inpatient claims, many error types occur. We’ve collected the most common and

identified the following examples during our various reviews of client claims:

Overcharging

Misbilling

Multiple chest x-rays were performed bedside at $361 each. The same

test, when performed in the radiology department, costs $160.

A standard metabolic panel lab test was labeled as “rush” and billed

at $3,346 vs. a non-rushed basic panel at $1,348.

During one patient’s stay, 16 saline flushes

totaled $1,072. This should have been

included in the charge to administer

antibiotics intravenously.

A 65-year-old male patient admitted for knee replacement was billed for newborn labor and delivery charges.

Upcoding and Upselling

Un bu n d l ing

Duplicate Billing

Additional Errors

MON TUE WED THU FRI SAT

The charge for a single

dose of acetaminophen

for a 325 mg dose of

ibuprofen

charged for a toothbrush for an emergency

appendectomy patient

80%of hospital claims contain errors

The 2011 error rate in

Medicare FFS was 7.9

percent, resulting in almost

$28 billion in overpayment

$28Billion

$14.50 $10

$1,000

A 30-year-old male was

admitted for uncontrollable

seizures. He was discharged

after 48 hours but billed for 72

hours of EEG monitoring.

A patient was billed for a

four-day hospital stay but

discharged after just

two days.

Due to a computer glitch, a patient was billed in triplicate for every lab test during a six-day stay.

Excess:

Excess:

$1,072

3x 3x 3x 3x 3x 3x

$3,346

$201 each$

2days

A processor allowed

a room charge on

the day of discharge.

The biller submitted drug

charges exceeding the

allowable maximum

dosage of a specific

drug per day.

3days 2 authorized

A processor allowed a three-day stay when

the payer only authorized two days.

Source: Kaiser Family Foundation

Source: Kaiser Family Foundation

Source: Kaiser Family Foundation

Source: Kaiser Family Foundation

Source: Kaiser Family Foundation

Source: Kaiser Family Foundation

Source: Kaiser Family Foundation

Source: Kaiser Family Foundation