Blogs
April 8, 2025 / April 9, 2025 by Intelliguard
Hospital charge capture is the documentation process that physicians and other clinicians must complete in order to be paid for services provided. Charge capture ensures that each medication given to a patient is properly documented and translated into the correct charge for billing purposes. Having an accurate hospital charge capture process is critical, as medications used during procedures and operations generate a large portion of revenue for hospitals around the globe. So, how can healthcare systems ensure that they don’t fall victim to missed charge capture and lose millions of dollars each year? It starts with selecting innovative tools and technology that can help healthcare leaders make data-driven decisions. To maximize revenue and ensure streamlined processes across all levels of patient care, hospitals should choose an interoperable charge capture software system. This means the software can integrate and collect data from Electronic Health Record (EHR) systems like Epic or Cerner, pharmacy dispensing systems, and billing software.
Think of charge capture as a ripple effect; whether it’s done well or poorly, it directly impacts the hospital system’s workflow efficiency. Accurate charge capture can prove difficult to achieve because of complex processes around medication administration. Importantly, these processes are susceptible to breakdowns for several reasons — one of them being human error. For example, when a patient needs medication during a visit, the process could involve upward of seven clinicians, each of which introduces a new opportunity for error:
With a variety of departments involved in the medication administration process, that also means there are multiple systems to navigate. The pharmacy dispensing system might be automated if the hospital is utilizing RFID technology or a pharmacy smart cabinet, while billing systems are more manual and require accurate medical coding to get claims approved and paid quickly. When you combine clinicians working with high levels of urgency, multiple electronic systems, and varying levels of inpatient and outpatient care being provided under one roof, it’s easy to see how mistakes — like charge capture leaks — happen regularly. Luckily, mistakes can be mitigated with intelligent software systems built to streamline workflows and automate data entry.
Health systems nationwide are investing in data-capture systems as they strive toward higher levels of operational efficiency. It’s critical for hospitals to have accurate charge capture throughout their revenue cycle to prevent detrimental financial loss. Technology can be a big part of the solution. Hospitals can benefit from choosing updated software with the following features:
Some hospitals still do charge capture by hand, which means documentation is completed on paper forms. This creates a lag in claims being processed and approved, which can backlog the billing department. With trusted technology in place, lengthy processes get streamlined, claims are approved quickly, patients get billed correctly, and providers are paid accurately and on time.
Updated charge capture software can have significant operational benefits. For example, streamlining charge capture helps to improve hospital workflows, ultimately allowing staff more time to focus on patient care. Integrated software seamlessly syncs with other databases, like EHR or pharmacy dispensing systems, eliminating time-consuming steps that can contribute to billing delays and establishing one source of truth for medication management. Lastly, hospitals that opt for updated, interoperable technology systems can automate more manual tasks, such as medication ordering.
Taking it a step further, integrating medication management technologies (like smart cabinets and RFID tags) with charge capture software can increase patient safety and overall inter-departmental compliance. Hospitals that utilize RFID-enabled technology and cloud-based software in pharmacies get increased medication visibility at every point of care and are likely to remain compliant with updated drug track and trace regulations.
Missed charge capture is costly. According to Healthcare Financial Management Association, hospitals lose as much as one percent of annual net revenue due to inaccurate charge capture. This happens in part because the medication administered does not match the units that were billed to the patient. Though one percent may seem like a small amount, it can translate to millions of dollars in lost revenue; it is especially significant for large healthcare systems — such as Trinity Health or Ascension — that have hundreds of individual hospital locations nationwide.By upgrading to interoperable software systems, hospitals can significantly improve charge capture — but that’s not the only financial benefit. With advanced data and analytics derived from intelligent software, healthcare administrators can predict trends, decrease or eliminate expired medications sitting on pharmacy shelves, and reduce waste by keeping inventory tight and accurate. With these three additional factors in mind, charge capture software is a smart financial investment.
The right charge capture software combined with best medication management practices can save hospitals millions in revenue while optimizing pharmacy operations. In order to remain in compliance with DSCSA guidelines and to provide the safest care across all units and departments, hospitals should adopt interoperable software systems across the board. With the latest technology in place, healthcare systems can expect higher levels of compliance and safety, which paves the way for long-term organizational success.Learn more about how Intelliguard’s Mira Intelligence software can help hospital leaders best manage medication inventory, predict trends, and eliminate revenue loss.