What is the purpose of a Revenue Code on the UB-04 form?

• A. A three-digit code that groups charges by department or type of service and drives how charges are billed to payers.
• B. A code that identifies the primary diagnosis.
• C. A code that records patient age.
• D. A code that lists hospital accreditation status.

Answer: (A)

Revenue Codes on the UB-04 are three-digit codes that categorize each charge by the department or service area that provided it. This grouping shows exactly where costs came from within the patient's stay—such as room and board, radiology, or laboratory—and guides how charges are billed and paid by payers. Each line item uses a Revenue Code alongside the specific service, units, and amount, which helps payer systems apply the correct rates and adjudicate the claim. In short, the Revenue Code structures charges by service area to ensure clear, payer-friendly billing and revenue reporting.