Where Do Medical Coders Work? 7 Settings That Might Surprise You

Medical coders in office setting 

The healthcare industry is constantly growing and changing, and one of the lesser-known careers taking part in that growth is medical coding. This career didn’t even exist a few decades ago but is now a crucial mainstay of the healthcare industry—and the surge of opportunity is ongoing.

Medical coding jobs are expected to increase at a faster-than-average rate of 13 percent through 2026, according to the Bureau of Labor Statistics (BLS).* That’s great to know, but you likely have more questions—like, “Where do medical coders work?” “And what exactly do they do?”—to get sorted out.

We turned to the data and expert insight to answer those very questions. Keep reading to learn more!

But first, what does a medical coder do?

Medical coders will hang their hats in different work environments depending on what they do. There are different types of medical coders—though the job duties can be very similar. According to the BLS, medical coders spend their time reviewing patient information and assigning appropriate diagnosis and procedure codes for patient care, population health statistics and billing purposes.

Medical coders make sure patient information is accurate and updated to protect patient safety, ensure correct billing and insurance follow through. Since their work interacts with several different parts of healthcare, they might be employed in several different ways.

Where do medical coders work?

Contrary to what you might guess, medical coders are employed in more than just clinic and hospital settings. We used real-time job analysis software to analyze 35,600 medical coding jobs posted over the past 12 months.** This data helped us identify the top work settings for medical coders.

Here’s what we found:

1. Hospitals & doctors’ offices

There’s no surprise here—hospitals need medical coders to document and assign codes for each medical procedure a patient receives. They research codes, interpret patient charts and use specialized medical coding software to assign the proper codes. Doctor’s offices and specialty clinics, such as dermatology or dental offices, also use medical coders to process billing and insurance claims.

Hospital patients may receive a number of treatments from several different physicians. That means hospital medical coders should be prepared for plenty of critical thinking and research to track down obscure medical codes. This can be a fun challenge, but don’t rule out working in a smaller, specialty clinic which also offers advantages.

2. Healthcare consulting services

Many companies act as consultants that can help hospitals, healthcare networks and clinics problem-solve and plan for the future. These companies hire a wide range of healthcare employees to help design, develop and implement solutions in performance and profitability in hospitals, health systems, physician practice groups and more.

A health coder in this kind of work environment would likely view clinical documentation and diagnostic results to extract data and apply appropriate ICD-10 diagnosis and procedure codes for billing, reporting, research and regulatory compliance.

Some of these companies specialize in IT, creating products to streamline medical coding and billing processes. Medical coders play a vital role in these companies, conducting audits and reviews to ensure accurate coding and prevent rejected claims due to coding errors.

This type of work environment might be a good pick for medical coders who are interested in improving and modifying systems, as well as troubleshooting existing communications.

3. Educational institutions

Colleges and technical schools need experienced medical coders to train the next generation of coding students. There are no official educational requirements for medical coders, but the BLS states there are certifications that can be earned from an accredited institution. These schools offer plenty of opportunities for trained medical coders to share their knowledge with students.

Teaching jobs typically require a few years of on-the-job experience, so they make a great option for seasoned medical coders who are ready for a change of pace. This is the perfect career path for anyone who loves the ins and outs of medical coding and enjoys sharing their wisdom with others.

Additionally, educational institutions may need medical coders for university-owned hospitals or clinics—the work of these coders will largely align with what you’d see in other hospital or clinic settings.

4. Insurance agencies

Medical coders who work for insurance agencies see patient claims from the other side of the table. They verify the accuracy of incoming claims and note if any information is missing or potentially incorrect. Then they compare the treatment a patient received to their insurance plan coverage, so payments can be processed.

Medical coders who work in the insurance industry will need to have a solid understanding of medical codes and be willing to do the research to fill in the gaps. An eye for detail is critical since catching errors is one of their main job duties. They should also be up for the challenge of interpreting the details of insurance plans.

5. Law firms

Billing fraud is a big problem for healthcare providers. Incorrect billing procedures can cause a provider to come under fire for fraud—even if it was unintentional. A provider has to prove that any billing and coding errors were simply mistakes, or they may face criminal charges.

Law firms often hire medical coders to help investigate fraud claims. These coders will examine records to help determine if coding mistakes were intentional or the result of billing fraud. A thorough knowledge of the laws and regulations governing programs like Medicaid and Medicare is a necessity in this medical coding position.

6. Government agencies

State and federal government agencies, such as the National Center for Health Statistics or state Medicaid departments, are another employer of medical coders. These daily job duties are similar to those of medical coders in other industries: assigning codes, abstracting information and reviewing and auditing incoming claims codes. Government agencies offer the opportunity to work on projects that may affect healthcare across the nation. While most medical coding roles have a strong focus on the financial side of healthcare, these codes also provide the government with valuable data for population health studies and other potential large-scale improvements.

7. Work-from-home medical coding

All of the work context choices for medical coders come with their own nuances. But there’s another popular option—medical coding from home. That’s right—you could be a successful medical coder from any place that has reliable internet access.

Working remotely as a medical coder certainly isn’t an option with every employer out there and is typically only available to coders with significant experience. But since the job is so easily performed digitally, some companies are making remote work an option. If you live in a hard-to-access location, lack transportation options or just simply prefer to skip the commute and set up a workstation in your living room, then this option is definitely worth exploring.

Is a medical coding career right for you?

So, where do medical coders work? All over the place!

Now that you’re aware of the wide array of opportunities for medical coders, you might be wondering if you have what it takes to land one of these positions. Check out our article, “Your 5-Step Guide to Become a Medical Coder,” to get a simple step-by-step breakdown.

*Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, [information accessed November 6, 2018] www.bls.gov/ooh/.
**Burning-Glass.com (analysis of 35,600 medical coding job postings, Oct. 01, 2017 – Sep. 30, 2018.)
EDITOR’S NOTE: This article was originally published in September 2015. It has since been updated to include information relevant to 2018.

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Brianna Flavin

Brianna is a content writer for Collegis Education who writes student focused articles on behalf of Rasmussen College. She earned her MFA in poetry and teaches as an adjunct English instructor. She loves to write, teach and talk about the power of effective communication.

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