Charge Description Master (CDM) Maintenance

The Charge Description Master, or CDM, is updated at least annually. Failure to update the CDM at least once a year could lead to errors in filing claims and reimbursement. An out-of-date CDM, could lead to over or under charging for a service, delay addition of new services and increase the risk of getting audited. A committee is necessary to ensure that all healthcare departments are updated and have input on changes to the CDM.

Parts of a CDM include:

• Charge - price of the Procedure/Service/Product
• Charge status - identifies how long/often a service is being used
• Charge Description - identifies what Procedure/Service/Product is being served
• Charge Code - Code in CDM that identifies Procedure/Service/Product
• Current Procedural Terminology (CPT) / Healthcare Common Procedure Coding System (HCPCS) Code - identifies specific service being used
• Procedure/Service/Product Code
• Revenue Code -  4 digits used to identify where the service in the hospital is being done
• Department Code - used for accounting to distribute revenue to the appropriate location