What is Medical Coding? Why is Coding Important?

Accurate medical coding boosts timely reimbursements, reduces claim denials, and strengthens your healthcare facility’s overall revenue cycle.
Did you realize that more than 80% of medical claims in the United States have errors, most resulting from improper coding? These errors cost the U.S. healthcare system around $935 million weekly. In fact, 42% of doctors count coding errors as the number one reason for claim denials.

In a system where financial viability and quality patient care are not mutually exclusive, proper medical coding forms the foundation of a hospital's revenue cycle. It directly impacts claim acceptance rates, reimbursement cycles, and overall operational efficiency.

Medical coding is all about how healthcare services are documented consistently and effectively communicated to insurance companies for reimbursement. Through the translation of complex medical information into a structured coding framework, medical coders bridge the health delivery-financial accountability gap.