How can 'adjustment codes' affect billing?

Adjustment codes play a critical role in the billing process by categorizing changes made to a patient’s account balance. These codes provide a systematic way to document and manage various adjustments, such as discounts, write-offs, corrections, or allowances. When an adjustment is applied to a patient's account, it may alter the total amount owed, and using specific codes allows for clear tracking and reporting of these changes.

By employing adjustment codes, billing staff can quickly identify the reasons for changes in billing, ensuring that the patient account is accurate and up-to-date. This encompasses adjustments due to billing errors, denied claims that have been rectified, or any other modifications that impact the financial aspects of a patient's care. Overall, adjustment codes are essential for transparent accounting and maintaining the integrity of the billing process.