4 minute read

What Is Charge Capture?


Updox Content Writer

Poor billing practices cost U.S. doctors an estimated $125 billion each year

But by understanding charge capture and how it improves invoicing, reduces compliance issues, and provides better patient care, practices can minimize those deficiencies and the revenue loss that comes with them.  

In this article, we’ll discuss what charge capture is, how it works, challenges that come with it, and the benefits of effective charge capture in the medical field.  

Let’s get started.      


Streamlining revenue cycle with charge capture

What Is Charge Capture? 

Charge capture is the process that ensures all billable services provided to a patient are accurately recorded and submitted for reimbursement.  

The charge capture process involves tracking procedures, treatments, medications, and supplies. It also includes collecting patient information, such as demographics and insurance coverage, to ensure precise invoicing. 

Why Is Charge Capture Essential? 

The healthcare industry is heavily regulated, and organizations are required to comply with numerous rules and guidelines. Accurate charge capture is critical for fulfilling these parameters and avoiding legal problems.  

Failing to capture charges leads to compliance issues, resulting in hefty fines and the loss of healthcare licenses. 

Charge capture is also a crucial component of the healthcare revenue cycle. It ensures accurate billing and proper reimbursement for the work that providers and other healthcare professionals perform.  

When a practice fails to capture all billable services, it results in missed income opportunities, negatively impacting profits. Medical providers depend on exact and timely invoicing to avoid charge lag the duration between providing medical services and recording the corresponding charges and maintain financial stability. 

Additionally, insurance companies deny claims if the charges are not recorded properly or if the patient information is incorrect.  

Rejected statements can cause significant postponements in compensation and result in the patient being responsible for paying the service cost. Patients then become dissatisfied with the practice, affecting the healthcare organization’s reputation.

Understanding the essentials of charge capture

How Does Charge Capture Work? 

There are four primary steps in an effective charge capture process. Let’s break them down. 

  1. Recording Services Provided. The medical team must correctly capture all billable treatments and services that a patient receives. 
  1. Verifying Patient Information. Staff need to confirm all details about the patient, including facts like if they have insurance. This data is critical for accurate billing, as it determines which services are covered and how much the patient is responsible for paying.  
  1. Coding Services. Services must be translated into standardized codes used for billing and reimbursement. 
  1. Charge Capture. Once everything is gathered and confirmed, the claim is submitted to the appropriate payer.
Complete Charge Capture

Challenges with Charge Capture 

While charge capture is essential, medical professionals often face challenges when trying to implement it effectively. Here are some of the most common obstacles they face: 

  • Lack of standardization There is no standard process for charge capture across healthcare organizations. This can lead to inconsistencies in billing and compliance issues.  
  • Complexity Charge capture can be a convoluted process involving multiple departments and systems, making it challenging to track all billable services correctly.  
  • Staffing issues Knowledgeable and skilled staff are necessary to guarantee accuracy in charge capture. Many organizations need help finding and retaining qualified employees for this critical function.  

Benefits of Effective Charge Capture 

Effective charge capture can provide many advantages to healthcare practices, despite the challenges. Here are some of the most significant benefits: 

  • Increased Revenue. Correctly capturing charges can help organizations enjoy higher profits by ensuring that all billable services are submitted for reimbursement.  
  • Improved Billing Accuracy. Effective charge capture improves invoicing accuracy, diminishing the risk of denied claims and compliance issues and leading to increased revenue.  
  • Better Patient Care. Healthcare organizations can also provide an improved patient experience by confirming that billable services are done accurately. 

A Charge Capture Solution 

One of the simplest and most effective ways to improve the revenue cycle at a healthcare practice is to implement charge capture software that helps you boost the profitability of your practice. 

Charge Capture powered by MDTech allows healthcare professionals to easily capture charges for services rendered in real time, ensuring nothing is missed or overlooked. 

Ready to see what Charge Capture and Updox can do for your practice? Schedule a demo to learn more


  1. What happens if charge capture is not done correctly?  

If charge capture is not done correctly, it can result in lost revenue, denied claims, compliance issues, and legal problems.  

  1. Who is responsible for charge capture in healthcare organizations? 

Charge capture is a critical function that involves multiple departments and staff members, including physicians, nurses, billing and coding specialists, and administrative staff. 

  1. How can medical providers improve their charge capture processes? 

Healthcare organizations can improve charge capture processes by standardizing procedures, ensuring staff is trained and qualified, and implementing technology solutions to streamline the process. 

  1. What are some common coding systems used in charge capture? 

Standard coding systems used in charge capture include Current Procedural Terminology (CPT) and the International Classification of Diseases (ICD). 

  1. What are the benefits of using technology to improve charge capture? 

Using technology to improve charge capture can help healthcare organizations streamline the process, reduce errors, and improve accuracy. This leads to better patient care and increased revenue. 

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