NHA Billing and Coding Specialist 2025 – 400 Free Practice Questions to Pass the Exam

The purpose of diagnostic coding in healthcare fundamentally revolves around categorizing and classifying medical diagnoses, which is essential for both reimbursement and statistical analysis. This systematization allows healthcare providers to accurately communicate the reasons for patient visits to insurers, ensuring proper reimbursement for services rendered based on the recorded diagnoses. Furthermore, diagnostic coding contributes to data collection for public health statistics, research, and epidemiology, aiding in the understanding of disease prevalence and outcomes.

While tracking patient treatments and determining patient eligibility are important functions within healthcare, they are not the core purpose of diagnostic coding. Identification of healthcare providers does play a role in medical billing and record-keeping, but it is not related to the primary function of coding diagnoses. Diagnostic coding is specifically designed to reflect the patient's health status, thus ensuring clarity and standardization in communication between providers and payers.