CDM (Charge Description Master)
Definition
The Charge Description Master (CDM), also called the charge drug master, is a comprehensive list maintained by hospitals and health systems of all billable services, procedures, and drugs. Each entry in the CDM includes a description, procedure code, and charge amount.
In the 340B context, the CDM is relevant because it determines how drugs are billed to payers. Ensuring that 340B-purchased drugs are correctly identified and billed in the CDM is part of billing workflow compliance. Errors in CDM configuration can result in incorrect billing that creates duplicate discount risk or misrepresents the nature of services provided.
For hospital-type covered entities, CDM accuracy is an important element of overall 340B billing compliance.
Frequently Asked Questions
Why CDM (Charge Description Master) Matters
CDM accuracy affects how drugs are billed to payers. Errors in CDM configuration can create billing compliance issues that affect duplicate discount prevention.
How Virtue 340B Uses It
Virtue 340B references CDM accuracy in the context of billing workflow reviews for hospital-type covered entity clients.