What are potential consequences of improper coding practices?

Improper coding practices can lead to significant repercussions, one of which is the potential for audits and fines. When coding does not accurately reflect the services provided, it can result in claims being denied or flagged for review. Auditors may need to evaluate these claims for compliance with regulations, which could expose the healthcare provider to financial penalties if discrepancies are found. This scrutiny not only affects the financial aspect of the organization but can also lead to a tarnished reputation and decreased trust among patients and regulatory bodies. Hence, the risk of audits and fines is a crucial consequence that underscores the importance of accurate and compliant coding practices.