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99%+

Audit Accuracy

24 Hr

Turnaround

100%

HIPAA Compliant

What Is a Medical Billing Audit?

Medical billing audits are a structured review of claims, payments, adjustments, and denials to identify revenue leakage, compliance risks, and billing inefficiencies. Many healthcare providers lose revenue due to underpayments, incorrect adjustments, missed charges, or coding errors without realizing it.

Our audits go beyond surface-level checks. We provide actionable insights that help practices improve revenue cycle performance, strengthen payer compliance, and reduce future billing risks.

Who Needs a Medical Billing Audit?

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Small practices

Small teams often struggle with limited billing bandwidth, causing small errors to turn into repeated denials and missed follow-ups.

Large / Group Practices

High claim volume can hide significant losses when the same coding or workflow issues repeat across hundreds of claims.

Multi-Specialty Clinics

Different specialties follow different coding and payer rules, which often leads to inconsistent billing and frequent denials across departments.

Single-Specialty Practices

Specialty-specific payer requirements, modifier use, and documentation gaps can trigger recurring denials and payment inconsistencies.

Multi-Location Practices

Different workflows across locations often result in uneven claim quality, eligibility errors, and inconsistent collections.

Growing Practices

Growth, staff turnover, or EHR changes often disrupt billing workflows, leading to unexpected denials, delayed payments, and reporting gaps.

What Is Audited in a Medical Billing Audit

During a medical billing audit, we review:

  • Claims and claim submissions to verify accuracy and clean claim standards
  • Payments and EOBs/ERAs to identify underpayments and payment variances
  • Adjustments and write-offs to ensure they are valid and properly applied
  • Medical coding and modifiers to confirm compliance and reimbursement accuracy
  • Denials and rejections to uncover recurring trends and root causes
  • Charge capture processes to detect missed or delayed charges
Audit Deliverables
  • Audit summary with key findings
  • List of revenue leakage opportunities
  • Root-cause report explaining why issues occur
  • Action plan to fix issues and prevent repeat errors
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This comprehensive review helps identify where revenue is being lost and provides clear, actionable steps to recover income and strengthen billing operations.

Internal Audit vs External Audit

  • Internal billing audits are performed by in-house teams and typically focus on routine checks and compliance monitoring. While helpful, internal audits may miss systemic issues due to familiarity with existing workflows.
  • External medical billing audits provide an independent review of claims, payments, and processes. An external audit often uncovers hidden issues such as payer underpayments, incorrect contractual adjustments, and workflow inefficiencies that internal teams may overlook.

Pre-Bill vs Post-Bill Audit

  • Pre-bill audits review charges, coding, and documentation before claims are submitted. These audits help prevent denials, reduce rework, and improve clean claim rates.
  • Post-bill audits analyze submitted and paid claims to identify underpayments, improper adjustments, and recovery opportunities. Post-bill audits are critical for revenue recovery and long-term process.

Why Medical Billing Audits
Are Essential to Financial Health

Underpayment audit icon
Identify underpayments Detect claims paid below contracted rates or incorrectly reduced by payers.
Denial reduction icon
Reduce future denials Uncover denial trends and root causes to prevent repeat billing errors.
Coding accuracy icon
Ensure coding accuracy Verify coding and modifier usage to support correct reimbursement and compliance.
Payer compliance icon
Improve payer compliance Ensure claims align with payer rules, policies, and contractual requirements.
Revenue protection icon
Prevent revenue leakage Identify missed charges, improper write-offs, and workflow gaps impacting cash flow.
Revenue protection icon
Shorten A/R days Find bottlenecks in billing workflows and fix them to speed up payments and reduce aging receivables.
Medical billing audit analytics

Common Revenue Leaks We Identify

Revenue Leak
What it Means
Underpaid claims icon
Underpaid claims
Claims paid below the contracted or expected allowed amount.
Incorrect contractual adjustments icon
Incorrect contractual adjustments
Wrong adjustment amounts or codes reducing reimbursement.
Missed or delayed charges icon
Missed or delayed charges
Charges not captured or entered late, causing lost revenue.
Bundling and modifier errors icon
Bundling & modifier errors
Incorrect bundling or modifiers leading to reduced payment or denials.
Timely filing losses icon
Timely filing losses
Claims denied due to late submission or follow-up delays.
Unworked denials icon
Unworked denials
Denials not appealed or resolved within payer deadlines.

Our Medical Billing Audit Process

Our audit process is structured, transparent, and efficient, designed to uncover billing issues, identify revenue opportunities, and improve long-term financial performance.

Data Collection

EOBs, ERAs, and secure PM/EHR access are collected to initiate the audit.

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2

Claim & Payment Analysis

Claims and payment data are analyzed to detect discrepancies and variances.

Underpayment Identification

Underpaid and incorrectly reimbursed claims are identified.

3
4

Root Cause Analysis

We determine the root causes behind payment issues and recurring errors.

Recovery & Correction Plan

A targeted recovery and correction strategy is created to regain lost revenue.

5
6

Reporting & Recommendations

Detailed reporting and actionable recommendations are delivered.

Types of Medical Billing Audits We Offer

We offer targeted audits based on your billing challenges and revenue goals. All audit data is handled using secure access controls and restricted review processes. We align with HIPAA requirements and follow strict internal protocols to maintain confidentiality.

Step 1

Pre-Bill Audits

Review coding, modifiers, documentation, and charge accuracy before claims go out to reduce denials and rework.

Step 2

Post-Bill Audits

Analyze submitted and paid claims to identify underpayments, incorrect adjustments, and recovery opportunities.

Step 3

Denial Audits

Identify top denial reasons and trends across payers to reduce repeat denials through root-cause fixes.

Step 4

Underpayment Audits

Compare paid amounts vs expected/contracted rates to detect payer underpayments and reimbursement variances.

Step 5

A/R Audits

Review aging A/R, follow-up workflows, and payer response patterns to improve collections and reduce days in A/R.

Step 6

Coding Audits

Evaluate coding and modifier usage for accuracy and compliance to improve reimbursement and reduce audit risk.

Frequently Asked Questions

What does a medical billing audit include?

A medical billing audit includes a detailed review of claims, payments, adjustments, and denials to identify where revenue is being lost. The audit evaluates coding and modifier accuracy, payer reimbursements, denial trends, write-offs, and A/R follow-up workflows. The goal is to highlight errors, inefficiencies, and compliance risks and provide clear recommendations for improvement.

What revenue leaks can an audit uncover?

An audit can uncover underpayments from payers, incorrect contractual adjustments, missed or unbilled charges, recurring denial patterns, documentation and coding gaps, and aging A/R that isn’t being followed up properly. Many of these issues go unnoticed but can significantly impact cash flow over time.

How do I know if my practice needs a billing audit?

If your practice is experiencing rising denials, delayed payments, growing A/R, unexplained write-offs, or inconsistent reimbursements, a billing audit can help identify the root cause. Audits are also useful after system changes, staff turnover, or when revenue does not match patient volume.

Will you identify underpayments and payer issues?

Yes. The audit reviews paid claims, remittance data, and adjustment patterns to identify potential underpayments and payer inconsistencies. This helps highlight reimbursement trends, payer-specific issues, and opportunities to improve collections accuracy.

Can you audit denials and find root causes?

Yes. We analyze denials by payer, reason code, procedure, and workflow step to determine why claims are being denied. This includes identifying issues related to eligibility, authorization, coding, documentation, or submission processes, allowing practices to prevent repeat denials.

What data do you need and how long does it take?

Typically, we request claims data, denial reports, remittance (ERA/EOB) files, and an A/R aging report. Most medical billing audits take 1–3 weeks, depending on claim volume, data availability, and the scope of the review.

Request a Medical Billing Audit
or Get a Claim Audit Review

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