What is a significant consequence of errors in medical billing?

Errors in medical billing can lead to increased claim denials, which is a significant consequence that can severely impact healthcare organizations. When billing errors occur, such as incorrect codes or incomplete information, insurance companies may reject claims for payment. This not only results in lost revenue for healthcare providers but also impacts their cash flow and operational processes. Consequently, providers may need to spend additional time and resources to rectify these errors, leading to delays in payment and increased administrative costs.

On the other hand, options related to better patient relationships, lower overall healthcare costs, and enhanced operational efficiency are generally positive outcomes that are not typically associated with billing errors. Instead, these outcomes are more likely to arise from accurate billing practices and streamlined operations. Understanding the ramifications of billing errors, particularly in relation to claim denials, underscores the critical importance of accuracy and compliance in the revenue cycle management process.