What is a charge description master (CDM) in the context of healthcare billing?

• A. A list of unpaid patient claims
• B. A collection of physician services only
• C. A comprehensive list of services and charges for standardized coding
• D. A detailed audit report for billing errors

Answer: (C)

A charge description master (CDM) is fundamentally a comprehensive list of services and charges for standardized coding used in healthcare billing. It serves as a central repository for all services offered by a healthcare organization, detailing the associated charges, billing codes, and descriptions for each service. The CDM plays a crucial role in ensuring accurate billing and coding, facilitating the reimbursement process by standardizing how services are documented and charged.

This list is essential for revenue cycle management, helping to streamline billing processes and reduce errors in claim submissions. By maintaining a complete and up-to-date CDM, healthcare providers can ensure consistent billing practices and compliance with regulatory requirements, which ultimately supports the financial health of the organization.