Commonwealth was growing fast, but its diagnosis coding wasn't keeping pace with its clinical work. Case-mix weight, and the reimbursement attached to it, was going uncaptured on episode after episode, all while the agency operated under audit scrutiny.
Depressed case-mix weights. Clinicians and in-house coders were consistently missing critical secondary comorbidities, leaving each episode coded below the acuity actually documented in the chart. The functional and clinical complexity was there; the coding didn't reflect it.
Audit exposure on every chart. Managed-care payers were issuing Additional Documentation Requests (ADRs) faster than the team could keep up. Each ADR pulled billing and clinical staff off other work to assemble and defend records, and much of it traced back to coding that didn't fully, defensibly support the claim. Every vague or unsupported primary diagnosis was another ADR waiting to happen, on top of the scrutiny agencies already face under programs like Targeted Probe and Educate.
An expensive manual workaround. To keep up, the agency leaned on administrative staff and additional assistants working complex spreadsheets: roughly $500,000 a year of manual coding and chart-tracking support that was expensive and still leaking revenue.