Ethics can look easy on paper, but the working world offers some complex situations. In the April print issue writer Mark Crawford explores three scenarios that illustrate the kinds of difficult situations that HIM professionals can find themselves facing.
“Some behaviors are clearly unethical—fraud is an extreme example,” Crawford writes, “but many are less clear and occur in complex situations. The most complicated situations often involve colleagues who witness what is, or appears to be, unethical behavior and are unsure how to respond—especially if job security is on the line.”
The following scenario, reprinted from the story, is a good example. What do you think? What leads to situations like this, and what options does the coder have? Are HIM professionals in all roles (not just coders) facing greater pressures to commit or condone questionable or unethical behavior? Discuss it by commenting at the end of the scenario.
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Scenario 1: Pressure to Upcode
In a large, for-profit, multi-specialty clinic, strong emphasis is placed on optimizing revenue opportunities for private-payer patients. The coding supervisor, who holds RHIT and CCS credentials, has informed the coding staff they must consistently assign E&M codes at a higher level than documentation supports.
One of the coders, also CCS-credentialed, has expressed her concerns about the appropriateness of this direction. The supervisor has indicated these comments are unwelcome and implied the coder should perhaps seek employment elsewhere if she has concerns. However, this is the only healthcare facility within the community, and the coder is a single parent with financial responsibilities for her family.
“The ethical concern here is the coding supervisor’s pressure to increase revenue at the expense of actual documentation to support the codes assigned,” notes Dana C. McWay, RHIA, JD, a clerk of the United States Bankruptcy Court for the Eastern District of Missouri in St. Louis. “She clearly does not value the coding staff’s input, as evidenced by her comment that criticism is unwelcome and the implication of seeking another job.”
It seems clear the supervisor’s instructions are intentional and designed to increase financial gain for the clinic.
This, of course, puts the coder in a difficult situation, especially with the hint of termination. Any liability for incorrect coding will likely be assigned to the coder and the clinic.
If the supervisor’s instructions are carried out, the clinic risks “financial and reputational harm, possibly resulting in sanctions by external forces,” says McWay. “Damage is also done to individual coders who are asked to sacrifice correct coding standards to comply with this inappropriate request. There is also harm to AHIMA because both the supervisor and coder are credentialed and represent the association’s ethical standards.”
The scenario contains multiple violations of AHIMA’s code of ethics, especially principle II, which instructs members to conduct their work in an honorable way. The supervisor also is violating principle IV, which calls for refusal to participate in unethical practices or procedures. Guideline 4.6 has also been broken, which states HIM professionals will not perpetuate dishonesty, fraud, or deception.
Probable violations of AHIMA Standards of Ethical Coding include standards 1 and 3 (accurate coding practices) and standards 6, 9, and 11 (not committing fraudulent or unethical practices).
The choice the coder makes may depend on the corporate culture. Does the culture encourage the reporting of violations? Will the company protect the coder if she informs another supervisor about the situation?
“I’d suggest she seek advice from a trusted HIM professional, just to be sure the direction given is indeed inappropriate,” says McWay. “If so, she needs to learn what process is available for voicing her concern to a higher level. Some organizations have an ombudsman or similarly situated individual who can help in situations like this.”



This is a truly unfortunate situation for the coder who is following her ethical principles by raising her concerns with her supervisor. The supervisor is quite clearly directing the coders to code in a highly unethical, even fraudulent, way in order to increase reimbursement. The response to the concerns raised (i.e., that the coder raising the concerns should seek other employment) only reinforce the fact that the upcoding being done is intentional and not due to lack of knowledge.
My first instinct would be to advise seeking another job as quickly as possible, as the culture at this clinic seems to be severely lacking in ethical behavior and practices. However, as the only healthcare facility within the community, options for this coder are limited. I would advise contacting administration at the clinic, since voicing her concerns to her direct supervisor did not change anything. It should be emphasized to the administration that this type of unethical behavior (upcoding) can have serious ramifications for the entire organization, financial and otherwise.
Without sounding like I would do the wrong thing (because more than likely in this situation, unless it meant life or death to my children, I would do what was right…. morally and ethically), I see where this could be a hard decision. I think I would go outside the company, to a Government agency to make my claim.
I think it bothers me even more that they would upcode the private pay clients vs the ones that have insurance. Being from a family that if it wasn’t for assistance, my kids wouldn’t have insurance since I am a student, and I am in the same situation as the person described above, I do sympathize with her situation. I would probably look into moving to a place where I had a better chance to survive. Whether the FEDS shut the place down, or she loses her job for doing the right thing, the end result seems to be that she will be jobless, unfortunately.
The coder should contact compliance or HR regarding her concerns. These are very serious issues that should be addressed in a timely manner
The coder should document all known ethical violations and go above her supervisor with the documentation. Like Dana McWay mentioned in the article, consulting with a professional for advice would be a good idea.
I don’t believe that ethical violations can be placed on a scale from “less wrong” to “more wrong”. An ethics violation is wrong but the reasons for the violation might be motivated by good intentions or ignorance or fear. If forced to state whether a situation of ethics violation is “more wrong” than another violation, I would perhaps look at the number of ethical standards broken and the potential consequences of the violations.
The supervisor obviously overstepped her bounds by demanding the coders code without documentation. Perhaps this is a situation where it would be justified by going over the supervisors head, and reporting this situation.
In addition to violating the AHIMA code of ethics, the action of up-coding, were it to be performed, is fraud. The clinic could be heavily penalized for performing fraudulent billing practices.
Hopefully every organization has a process in place to enable anonymous reporting of such unethical procedures. In this scenario, the coder is in a very tough spot due to her personal situation, ‘other’ job availability, etc.
All three situations were interesting. For the upcoding issue she definitely needs to bring this issue to HR or the compliance officer because either way she looks at it if she doesn’t report it she is in a bad situation. If she doesn’t upcode she will get in trouble by her supervisor and fired, even though she doesn’t deserve it. If she does upcode and it was audited she would get into even bigger trouble and I doubt her supervisor would stick up for her. Personally I’m sure her colleagues feel the same way about the situation and they should discuss it and bring it to HR or the compliance officer all together because they would have a stronger case then.
This is an unfortunate circumstance the coder has been put into. She is fearful of losing her job by following her supervisors instructions as well as doing something she knows is unethical and against the law. The coder is credentialed and knows the violations of AHIMA’s code of ethics. If she were to go along with her supervisor and get caught, she would be fired and lose her job regardless. Documintation of the supervisor’s comments and instructions need to be taken to management or whatever the clinic’s protocol may be for ethical violations and dealt with professionally to preserve her credentials and job with the clinic.
This is very sad that a person in a leadership role would be exhibiting this kind of behavior. I would hope that the coder would feel safe enough to report this to someone higher up than her supervisor so it could be dealt with appropriately.
I am currently a student AHIMA member. I am taking the course to complete my HIT degree to become a RHIT. I feel very strongly that this employee definitly needs to seek out a higher person above her supervisor. This is very incorrect for a supervisor to be advising her employees to upcode and code incorrectly. This is such a sticky place to be in within your employer. She definitly needs to think not only is the clinic she work for at stake but also her certification and her career.
Ethical behavior is something that needs to be practiced everyday. Situations always arise that contradicts with what we know to be right, such as these scenarios, and we have to know how to deal with them productively. The code of ethics in the workplace should be reviewed frequently so that each staff member has these fresh in their mind. A strong code of ethics should also be practiced everyday outside of the workplace so that there is no question or doubt in our mind to make the right decision when there are conflicts.
I dont think any employee should have to feel they will lose their job if they dont do something unethical and every business should have a policy intact to prevent this from happening.
This situation is obviously for financial gain. This not only violates the code of ethics, but its also fraud. These kind situations are what give the healthcare industry a bad name and also icreases insurance rates. This needs to be brought up to the HR or other superior or go as far as the state or federal level.
As a coder this would be a tough situation to be in, but coders need to follow their code of ethics. This supervisor asking these coders to up code should be fired, HR needs to step in and resolve the situation by terminating the supervisor. It’s wrong to ask this of the coders and it’s wrong to gain a financial benefit also.
Ethics do seem easy on paper but then when real life and real people are involved that is when the situation’s get complicated. As these example’s prove there needs to be some governance of these and other ethically questionable situations to keep people honest.
The true measure of a person’s character is doing what is right when no one is watching. Unethical behavior is wrong. The overcharges could cause the clinic to be charged with fraud especially since it is deliberate. I do not envy the coder as it is always hard to stand up to your superiors and no one wants to feel their job is in jeopardy especially when they want to do what is right. I wouldn’t want to be the patient who is being overcharged either. Unfortunately the coder does have to take a stand on this issue.
Many emotions are involved with ethics, that is why sometimes it isn’t always a black and white situation.
If this is a large facility their must be other coders feeling the same way. First, the coder needs to make sure that other coders realize that this is an ethical issue; and they are also at jeopardy with their jobs.
Approaching the HR department with the backing of the department, will make more of a difference if everyone realizes it is wrong.
Forcing the supervisor to re-evaluate her earlier statement.
Many companies have an “open door policy” when it comes to raising issues or making a complaint about a co-worker or supervisor. The policy states that an employee who makes a complaint in good faith can not be retaliated against (including harassment and employment termination). I would hope that the organization where this coder works has the same or a similar policy so that she will not have to choose between compromising the integrity of her work and possibly losing her job. There needs to be protection for any individual that raises ethical issues to upper management and HR. If that protection is in place, it should help to deter these unethical practices from arising in the first place.
The supervisor’s attitude and behavior are completely inappropriate and unethical. The supervisor is risking serious legal consequences for the medical facility, as well as serious harm to their reputation. The supervisor should be fired, not the coder. No supervisor should ever put an employee in the same position the coder was put in. All medical facilities should have policies in place to prevent this from occurring. There should be someone at the facility that the coder could report the supervisor to without fear of losing her job.
The worker definately doesn’t want to put themselves in situations that put them in a liability. I know at my work we have a toll free number we can call if we have ooncerns so if they have a number to call anonymously then they should do that. Either way they can’t code incorrectly for the gain of the company because the coder will get in trouble not the company.
Besides being unethical, this is fraud. I can’t imagine any facility wants to be investigated for fraud. The supervisor is way off base to request coders to do the up-coding. It is sad that the employee has to be intimidated into thinking she will lose her job if she keeps questioning the supervisor. I think the employee should go to the compliance department (if they have one) and show them her evidence. If there is no compliance department then maybe she should try someone in a high position within HR. Nobody should be pressured to do something they consider unethical or that they know is wrong just to keep their job. I would bet if that coder was brought up under investigation for the up-coding, her supervisor would not back her up and would let her take the fall.
I cannot believe that a supervisor would think so little of her employees. Ethics are a huge part of the coding world, maybe the supervisor needs to find employment elsewhere
Ethics should not only be for the company but should be personal too. I think if you comprise your your ethics you are not only hurting yourself but the company in which if work for. If this boss is telling you to “bend” the rules to get the company more money than they clearly need to take a look at their personal ethics. No employee should feel they will be fired for doing the right thing. I would go to HR and let them know what is happening so they can look into the situation and investigate who they have put in charge. They need a leader who inspires them to follow the many coding laws and make it not about money but about patient care.
I can’t believe there are situations like this out there! For her supervisor to put her in that situation is terrible. She needs to contact someone from HR because fraud is being committed because that is what I would do. I would not want everything to fall on me if it’s discovered what is happening because the supervisor could act like they had no idea this was going on.
The supervisor is in the wrong and the coder should document the incident and bring it to HR. No one should be threatened to lose their job because they won’t do what it wrong or unethical.
This is very sad but probably more common than one wants to admit. This individual is an precarious spot. As it is the supervisor who is pushing for this I would wonder if this attitude is pervasive throughout the company. Therefore, I would want documentation of some sort before going to another individual about my concerns. After attempting to gather a record of my concerns I would approach the next level supervisor or the utilization management department. I may even phrase it as a question- Why am I billing this way. It is possible (though unlikely) the employee misunderstood the standards required for billing a particular way. Since it is hard to tell how high this goes, it would be ideal to have some documentation to back up the employee’s statements. Thus if she is challenged and fired she has some way to protect herself. By documenting both her reasons and her actions the employee can better protect herself should an investigation into her coding take place but it is essential that she take action.
The coder should talk to her supervisor about the situations so they can work something out.
It is unfortunate that there are supervisors who put their employees in a position where they have to choose to go against ethics or risk losing their jobs. Hopefully, most organizations have a compliance department where these types of things can be reported and protect employees who report these situations, to prevent this kind of unethical behavior.
There are some very legal ramifications in this scenario that go even beyond the ethical dilemma. Obviously, the supervisor is aware of the coder’s situation, and knows that they can’t just walk out. I would also have to wonder if the supervisor isn’t close to violating employment laws – there is basically a threat of unemployment if the coder refuses to go along with something they know is wrong. Does AHIMA have some resources for the coder? Also, this supervisor must have a supervisor who understands the risk that the facility is being made vulnerable to. If this is the belief of the healthcare facility, then the coder would be better off to not work there since they are putting themselves at risk also. Since this coder has some experience, it may even be possible to do something remotely from home.
It would appear that the supervisor is breaking some basic rules and guidelines. The difficult part is how to manipulate around the situation so that it does not impact the person’s job. Ideally the company should have a complaint/compliance person but if not the best thing would be to talk to human resource. There should be at least three people and document, document and document.
I think this coder is in a very sticky situation. Obviously she knows what is right, but her supervisor is making her job hard. I feel the supervisor should value her worker and have some empathy.I hope the coder would seek help from HR, but I know sometimes in facilities like the one mentioned, the community sticks together. To many politics in the works place. I personally would try to work else where, but in this situation, a bad reference may make it hard to go elsewhere. Whenever a person transfer jobs, you are asked why you left your last job. If you are honest it can come back to haunt you especially when these facilities compete. I in my past have had an employer tell me I was not allowed to quit or they would make my life harder if I went anywhere else.
I agree with many of your comments. The coder should gather all the necessary documentation that proves the practices are unethical. She could contact someone above her supervisor and express her concern for both herself and the clinic. Advi
I agree with the comments provided above. The coder should gather as much information as possible that proves what her supervisor is instructing is unethical. She should go to her supervisor’s management and present the information informing them that if this continues not only could she be punished as the coder but there could be major repercussions for the clinic as well.