What is the purpose of a revenue code on the UB-04 claim form?

The purpose of a revenue code on the UB-04 claim form is to identify the department or service provided during a patient's stay in a healthcare facility. Revenue codes are critical as they categorize services or items into specific areas of the hospital, allowing insurers to correctly understand what services were provided. This coding system helps streamline billing and ensures appropriate reimbursement by indicating the specific department responsible for the service, such as inpatient care, outpatient treatment, or ancillary services.

In addition to identifying the department, revenue codes also facilitate the correct allocation of costs, which ultimately aid in the reimbursement process, linking the service to the corresponding charges. While it is true that other components of the claim form can detail costs or assign unique codes, the primary function of the revenue code is precisely to categorize the service or department rendering those services.