What is a potential consequence of incorrect coding in a medical practice?

Incorrect coding in a medical practice can lead to lost dollars, which is a significant consequence. When coding is done inaccurately, it can result in underbilling for services rendered, leading to decreased revenues. This could occur if the services provided are not coded accurately for reimbursement from payers. Moreover, incorrect coding may lead to claim denials from insurance companies, requiring re-submissions and additional administrative efforts, which can further inflate costs and exacerbate the financial impact on the practice.

In contrast, improved patient outcomes, increased revenue, and enhanced employee training do not logically stem from incorrect coding. Rather, accurate coding is essential for ensuring proper billing and optimal financial health of a practice, and any failure in this area typically reflects negatively on the financial status.