Will medical billing errors lead to a license investigation?

On Behalf of | Apr 21, 2025 | Medical Licensing

Medical billing errors can cause serious consequences for healthcare providers in Pennsylvania. In some cases, they can lead to license investigations and even suspension or revocation.

Some mistakes happen because of human error or outdated systems. However, it is important to understand when significant billing problems can lead to disciplinary action from the Pennsylvania licensing boards.

Who conducts license investigations in Pennsylvania?

The Pennsylvania State Board of Medicine and the State Board of Nursing both oversee billing-related conduct for license holders. These boards expect all healthcare providers to follow proper billing practices. When a provider submits incorrect or misleading billing information, the board may view this as fraud, even if there was no intent to deceive.

What billing errors are subject to investigation?

Common billing errors include: 

  • Upcoding
  • Unbundling procedures
  • Billing for services not provided
  • Submitting claims under the wrong provider number

Insurance companies and patients may report these issues. If the board receives a complaint, it may open a formal investigation to determine whether the provider violated professional conduct rules.

What happens during a license investigation?

Pennsylvania boards have the authority to review patient records, audit billing practices and interview the provider. If the investigation finds serious problems, the board may issue penalties. These can include fines, required education, license suspension or even revocation in extreme cases.

To reduce the risk of license problems, healthcare professionals in Pennsylvania should review their billing systems often. Regular staff training on electronic tools and clear communication can help prevent mistakes from happening.