What is Risk Adjustment Coding & Why is it Important for Healthcare Organizations?
Risk adjustment coding ensures healthcare organizations and insurance companies accurately account for patients' health statuses, adjusting payments accordingly. This process uses diagnostic codes to calculate a risk score, reflecting the cost of care. It prevents unfair penalization of patients with pre-existing conditions and ensures providers treating sicker patients receive appropriate reimbursements. Risk adjustment coding is crucial for equitable patient care and financial stability of healthcare providers.
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