Upcoding Is the Assignment of a DRG That Does Not

question 31

True/False

Upcoding is the assignment of a DRG that does not match documentation and is for the purpose of increasing outpatient reimbursement.

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Definitions:

Financial Reporting

The method of generating reports that reveal the financial condition of a company to its management, investors, and governmental bodies.

Conversion Cost

The total expense of converting raw materials into finished goods, including both direct labor and manufacturing overhead.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs for management, equipment maintenance, and factory utilities.

Direct Labor Cost

This cost includes wages and benefits paid to employees who are directly involved in producing goods or providing services.