Outpatient Facility Coding Alert - 2020 Issue 3
Compliance: Have You Built an Audit Plan? Payers Are Expecting It
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Article Overview
This article explains how payer audits are evolving beyond Medicare and why medical practices should prepare for broader review of claims behavior. It discusses common audit focus areas, internal self-audits, risk-based chart review planning, and how compliance teams can use audit findings to guide education and remediation. The piece is aimed at coders, compliance staff, auditors, and practice managers who need a high-level view of payer scrutiny and audit-readiness planning.
Why This Topic Matters
Payers are increasingly using data-driven methods to identify claims for review, so practices need a structured audit approach to reduce compliance risk and respond to audit expectations.
Article Sections
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Private Payer Audits and Predictive Analytics
Introduces the broader audit environment and how analytics are being used to identify claims for review. Covers the role of private payer auditing and the general shift toward predictive methods.
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Top Issues Payers Examine
Summarizes the major categories of claim concerns that may draw attention during payer analysis. Discusses broad problem types seen in coding and billing review.
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Review Categories in Medical Practices
Describes the main claim profiling categories used in auditing, including service utilization patterns and time-related review concepts. Focuses on how claims may be grouped for analysis.
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Modifiers Under the Microscope
Explains that modifier use is a common review area and that scrutiny may extend beyond the most familiar items. Notes that payer and program review activity may include modifier utilization.
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Automated Reviews Are the First Step
Outlines the general sequence of automated screening followed by human review. Mentions sources practices can monitor to stay aware of current audit focus areas.
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Payers Expect You to Build an Audit Plan
Discusses the need for an internal audit plan and how it fits into compliance efforts. Emphasizes structured self-review as part of a practice program.
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Understand Risk-Based Auditing
Introduces risk-based audit planning and the use of comparative analysis across services and specialties. Focuses on how practices can prioritize areas for review.
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Base Number of Chart Reviews on Risk
Covers chart review sizing based on perceived risk and when additional review may be warranted. Addresses sampling approach at a broad level.
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Calculate Pass/Fail Rates
Explains how audit results can be summarized and tracked over time. Discusses using findings to support follow-up review and education planning.
What You Will Learn
- How payer audit activity is changing
- Which broad claim areas tend to attract review
- Why internal audit planning matters for compliance
- How risk-based auditing supports chart review planning
- How audit results can be tracked and used for follow-up
Who Should Read This
- Medical coders
- Compliance officers
- Practice managers
- Auditors
- Revenue cycle staff
- Physician office administrators
Codes Discussed
Modifiers Discussed
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