In the context of revenue cycle management, what is a charge master?

In revenue cycle management, a charge master serves as a comprehensive list of billable items and costs. It is a critical tool used by healthcare facilities to detail all the services, procedures, and items that can be charged to a patient or insurer. Each entry in the charge master typically includes a description of the item or service, its associated costs, and the billing codes that relate to it, such as Current Procedural Terminology (CPT) codes or Healthcare Common Procedure Coding System (HCPCS) codes.

Having an accurate and detailed charge master is essential for ensuring that providers receive appropriate reimbursement for the services they render. It supports the billing process by defining the prices and codes that will be used to generate invoices. The charge master also plays a key role in maintaining compliance with regulatory requirements and aids in standardizing billing practices across the healthcare organization.

Contextually, the other options do not accurately represent the function of a charge master. A summary of hospital expenses focuses on costs rather than specific billing items, a collection of payer contracts relates to agreements with insurance companies rather than billing specifics, and a report of patient outcomes is centered on the effectiveness of care rather than the financial components of the revenue cycle. Therefore, the charge master is distinctly tied to the detailed