Medical Auditing Practice Exam 2026 – The Comprehensive All-In-One Guide to Exam Success!

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How is "fraud" defined in healthcare auditing?

Accidental billing errors

Intentional deception or misrepresentation

In the context of healthcare auditing, "fraud" is defined as intentional deception or misrepresentation. This involves actions taken by individuals or entities with the conscious aim of securing unauthorized benefits, payments, or services. Such acts may include falsifying information on claims, billing for services not provided, or misrepresenting the nature of a service to receive reimbursement that is not warranted.

Fraud is particularly serious because it can lead to significant financial losses for healthcare systems and can undermine the integrity of the healthcare system. It is distinct from unintentional errors, as those may arise from negligence or misunderstandings rather than a deliberate intention to deceive. This focus on intentionality is a key aspect in distinguishing fraud from other forms of inaccuracies or inefficiencies in healthcare billing and documentation practices.

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Negligent coding practices

Insubstantial documentation

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