What is the general function of the charge description master?

The charge description master (CDM), also known as the charge master or billing master, serves a vital role in the healthcare revenue cycle. Its primary function is to provide a comprehensive listing of all services, procedures, and associated costs that a healthcare facility offers. The information in the CDM includes not only the charge codes but also descriptions and prices for each service. This is crucial for ensuring accurate billing and for helping to standardize charges for services rendered.

When healthcare providers deliver services, the details from the CDM guide which codes are applied for billing purposes, streamlining the process and reducing errors. By maintaining an accurate and up-to-date charge description master, healthcare organizations can enhance financial performance and compliance with regulations.

While options related to patient care protocols, healthcare provider listings, and appointment management are important aspects of healthcare administration, they do not capture the essential function of the charge description master, which is strictly focused on billing and cost documentation.