TruCare

RCM fundamentals

Institutional Billing

Billing for facility services from hospitals, nursing facilities, home health agencies, and hospices on the UB-04 or 837I.

Also called: facility billing, hospital billing

Definition

Institutional billing covers facility charges for rooms, nursing, equipment, supplies, and other resources. Claims go on the UB-04 paper form, also called the CMS-1450, or the 837I electronic transaction. They use revenue codes and type of bill codes, and inpatient stays group into diagnosis-related groups (DRGs).

Why it matters

Facility claims carry more data than professional claims, including occurrence, condition, and value codes. A wrong type of bill or revenue code can deny the claim or price it under the wrong payment method. Chargemaster errors repeat on every facility claim.

Example

A hospital outpatient surgery generates a UB-04 with revenue codes for operating room time, recovery, and drugs. The surgeon’s fee goes separately on a CMS-1500.

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