The surgical scheduling, site of care, and laterality errors costing hospitals millions

Small gaps in surgical documentation can have big downstream implications. Learn how precision prevents denials, delays, and lost revenue.
Published
Written by
Picture of Barbi Green
Vice President, Brand and Content

In surgical departments, seemingly minor documentation issues can quickly snowball into large financial problems. The operating room (OR) drives a significant share of hospital revenue, but even minor inaccuracies in documentation can impact surgical scheduling, delay claims, and trigger costly denials.

Our latest insight brief, Small OR misses. Big financial losses. The role of precise documentation in surgical department success, examines three common documentation challenges that can undermine surgical operations:

  1. Selecting the correct site of care  
  2. Documenting laterality  
  3. Ensuring accurate case duration estimates  

Each may seem like a minor detail, but when documentation lacks the precise clinical terminology required for smooth reimbursement and scheduling workflows, the ripple effects can be felt from the OR to the revenue cycle department. 

The excerpt below explores how documentation around site of care is becoming increasingly critical as payer policies evolve. If you’re ready for a longer read, click the graphic below to download the full insight brief now. 

Site of care

As the Centers for Medicare & Medicaid Services (CMS) phases out Medicare’s Inpatient Only (IPO) List, the distinction between inpatient, outpatient, and ambulatory surgical center (ASC) procedures is becoming less rigid – and more scrutinized. Commercial payers are expected to follow a similar path.

Historically, the IPO List provided a clear distinction: certain procedures were reimbursed only when performed in a hospital inpatient setting. The list’s retirement introduces greater flexibility, but also shifts accountability to providers who must now ensure site-of-care decisions align with payer-specific rules at the time of scheduling.

Without that clarity and level of detail, organizations face increased risk of:

  • Claims denied if a commercial payer determines the procedure should have been performed in a lower-cost setting
  • Delays caused by missing or insufficient clinical justification for inpatient care
  • Time-consuming resubmissions and appeals that tie up revenue cycle teams
Site-of-care decision considerations as the CMS Inpatient Only list is phased out

Download the full insight brief, Small OR misses. Big financial losses, to learn how precise documentation can reduce denials, improve surgical scheduling accuracy, and strengthen financial performance. 

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