E/M Coding Alert - 2010 Issue 27
Self-Audits: Know What Benchmarking Against 'Bell Curves' Can Do For You -- And What It Can't
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Article Overview
This article discusses the role of Medicare utilization statistics in self-audits, practice benchmarking, and audit preparation. It explains why outlier analysis can help identify areas for closer review, how broader data review may be used by auditors, and why chart audits remain essential for understanding whether a practice’s coding patterns reflect documentation, patient mix, or other factors. The content is aimed at coding professionals, auditors, consultants, and physician practices reviewing utilization data.
Why This Topic Matters
Benchmarking can flag practices that differ from peer norms, but raw statistics alone do not establish improper coding. Understanding the limits of utilization data helps organizations focus chart audits, support compliance efforts, and respond more effectively to payer review activity.
Article Sections
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Benchmarking and outlier analysis
Introduces the use of utilization statistics to compare a practice with peer-group patterns and to identify when a practice may appear outside the norm. It frames benchmarking as a starting point for review rather than a final determination.
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Why the statistics matter
Explains why practices may keep Medicare utilization data available for internal review and broad specialty comparison. It also discusses how different patient populations and practice mixes can affect statistical patterns.
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CMS may take data review further
Describes additional layers of data review that may be used beyond basic utilization numbers. It notes that more than one variable may be considered when evaluating practice patterns.
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Audit charts for best results
Summarizes how benchmarking data can be used to guide follow-up review and why chart audits are needed to investigate differences in practice patterns. It emphasizes the role of record review in understanding whether observed trends are appropriate.
What You Will Learn
- How Medicare utilization statistics are used in practice benchmarking
- Why outlier status can trigger closer review
- What factors can influence differences between a practice and peer norms
- How broader data analysis may supplement basic utilization review
- Why chart audits remain important in self-audit workflows
Who Should Read This
- Medical coders
- Coding auditors
- Compliance staff
- Physician practice managers
- Consultants
- Healthcare revenue cycle professionals
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