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Procedure Coding (CPT)
Robert R. Pontecorvo Jr.
Introduction
• Procedural coding– Translate medical procedures and services
into codes– Explains what services were provided
• Code “linkage” with diagnostic codes
• Maximum reimbursement
The CPT Manual
• Procedure code• Medical procedures and services• Based on encounter form or patient record
• Current Procedural Terminology (CPT)
– HIPAA-required code set
– Published by the AMA
– Updated annually
– Use the appropriate CPT based on date of service
Organization of the CPT ManualRange of odes
Evaluation and Management 99201 99499
Anesthesiology 00100 – 0199999100 – 99140
Surgery 10021 – 69990
Radiology 70010 – 79999
Pathology and Laboratory 80048 – 89356
Medicine 90281 – 9960299500 – 99602
E&M Codes Initial VisitCode History Exam Face to Face Time
99201 Problem Focused Problem focused 10 minutes
99202 Expanded problem focused
20 Minutes
99203 Detailed 30 Minutes
99204 Comprehensive 45 minutes
99205 Comprehensive 60 minutes
E&M Follow upCode History Exam Face to Face time
99211 Not required 5 minutes
99212 Problem focused 10 minutes
99213 Expanded focused 15 minutes
99214 Detailed 25 minutes
99215 Comprehensive 40 minutes
E&M Treatment codesCode Explanation Minutes Units
97800 Acupuncture N/A 1
97810 Acupuncture with Electrical stimulation
N/A 1
97812 Cupping N/A 1
97813 Moxibustion N/A 1
97010 Hot or cold packs applied to one or more areas
N/A 1
97026 Infrared therapy Heat Lamp 1
97140 Manual therapy Tui Na (15 minutes) 1
97110 Therapeutic exercise
15 minutes 1
97124 Therapeutic massage
15 minutes 1
Organization of the CPT Manual (cont.)
• Manual Introduction – General instructions
– Information about common• Prefixes• Suffixes• Word roots
• Guidelines for each section
Organization of the CPT Manual (cont.)
• Sections– Guidelines at
beginning– Categories
headings
• Page– Section name– Subsection name– Subheading– Category
General CPT Guidelines
• Code format
– 5-digit numeric code
– Stand-alone unless description contains a semicolon
• Add-on codes– Additional procedures– Indicated by plus sign
(+)– Indented codes
Symbols Used in CPT
Code description has been revised
A new code
# Codes are out of numeric sequence
New or revised text information
Symbols Used in CPT (cont.)
Does not require modifier of 51
FDA approval pending
Moderate (conscious) sedation is included in the procedure
Organization of the CPT Manual (cont.)
• Modifiers– Up to three per procedure
– Indicate that special circumstance applies
– Appendix A
– Section guidelines
Category II, III, And Unlisted Procedure Codes
• Category II – supplemental tracking codes
• Category III – temporary codes
• Unlisted codes – code not yet assigned– Include a description of service or procedure– Check with payers regarding use
Coding Terminology
• Bundled codes– Read description
carefully– Do not unbundle
• Critical care– Provided to unstable
patients– Documentation
• Concurrent care– More than one
physician– If different specialties,
not considered duplication
Coding Terminology (cont.)
• Consultations– Must have request, record of findings and
recommendations, and report– Verify if payer is accepting these codes
• Counseling – use codes if history or physical is not done
Coding Terminology (cont.)
• Downcoding – Reimbursement on a lower code level than
submitted– Lack of documentation most common cause
• Unbundling
• Upcoding
Evaluation and Management Services
• E/M codes – Used by all physicians
– New patient vs. established patient
• New patients – require more time
• Established patient – seen within 3 years
Evaluation and Management Services (cont.)
• Key factors that help determine level of service Extent of patient history taken
Extent of examination conducted
Complexity of medical decision making
Evaluation and Management Services (cont.)
• Elements– Chief complaint (CC)
– History of present illness (HPI)
– Review of systems (ROS)
– Past, family and/of social history (PFSH)
• Coding descriptions
– Problem-focused
– Expanded problem-focused
– Detailed
– Comprehensive
Patient History
Evaluation and Management Services (cont.)
• Elements – Constitutional exam
– Body areas (BA)
– Organ systems (OA)
• Coding description– Problem-focused
– Expanded problem-focused
– Detailed
– Comprehensive
Physical Exam
Evaluation and Management Services (cont.)
• Elements for documentation– Number of diagnoses and management
options
– Amount or complexity of data to be reviewed
– Risk of complication or death if untreated
Medical Decision-Making
Evaluation and Management Services (cont.)
• Complexity level – Straightforward MDM
– Low-complexity MDM
– Moderate-complexity MDM
– High-complexity MDM
Evaluation and Management Services (cont.)
• Contributory factors in assigning codes1. Counseling
• Reason for encounter• 50% or more of time
2. Coordination of care
Evaluation and Management Services (cont.)
3. Nature of presenting problem• Minimal complaint
• Self-limited complaint
• Low severity complaint
• Moderate severity complaint
• High severity complaint
Evaluation and Management Services (cont.)
• Additional considerations– Time
• Average times• Not critical unless code choice is based on time
– Location where services occurred
Surgical Coding
• The surgical package– All procedures normally a part of an operation
• Preoperative exam and testing
• Surgical procedure
• Routine follow-up care
• Global period – time period covered for follow-up care
Surgical Coding (cont.)
• Integumentary System– Codes based on size
and location
– Read and follow instructions carefully
• Musculoskeletal System– Subheadings
• general• Head to toe
– Fracture codes most common
Surgical Coding (cont.)
• Respiratory System– Code to furthest extent
of the procedure
– Approach • Scope• Incision
– Incision vs. excision codes
– Repair procedures
• Cardiovascular System– Complicated coding
– Read instructions carefully
– Sequence codes correctly
Surgical Coding (cont.)
• Hemic/Lymphatic Systems and Mediastinum and Diaphragm
• Digestive System– Upper– Lower
• Urinary System– Kidneys and renal
function
– Diagnostic and therapeutic procedures
– Laparoscopy vs. incision
Surgical Coding (cont.)
• Male Genital System
• Female Genital System/Maternity and Delivery
• Endocrine System
• Nervous System– Subheadings by
anatomic sites
– Subdivided by procedure
– Specialized guidelines
Surgical Coding (cont.)
• Eye and Ocular Adnexa– Highly specialized
procedures
– Read instructions and guidelines carefully
• Auditory System
• Radiology– Diagnostic and
therapeutic procedures
– Read all includes and excludes carefully
Surgical Coding (cont.)
• Laboratory Procedures – panels
• Medicine and Immunizations– Two codes
• Procedure • Vaccine or toxoid
Using the CPT Manual
• Become familiar with guidelines and notes for each section
• Find the procedures and services provided by the office
• Determine appropriate codes – E/M sections– Alphabetic listing– Check all codes listed
Using the CPT Manual
• Determine appropriate modifiers– Required if available
– Enhance reimbursement
• Enter codes and modifiers on CMS-1500 form– Primary procedure first and match with appropriate
diagnostic code
– All other procedures matched with appropriate diagnostic code
The HCPCS Coding Manual
• Health Care Common Procedure Coding System
• Use for coding services for Medicare patient
• HCPCS Level I codes – CPT codes
The HCPCS Coding Manual (cont.)
• HCPCS Level II codes– National codes for supplies and DME
– Cover services and procedures not in CPT
– 5 characters ~ numbers, letters, or a combination of both
– Modifiers
The HCPCS Coding Manual (cont.)
• Coding procedures – Locate service in the Alphabetic Index
– Verify description in the alphanumeric Index
– Choose code that matches service, procedure, or item supplied
– Enter on CMS-1505 form or into the billing program
Coding Compliance
• Physician – ultimate responsibilitySubmit correct claims– Help ensure maximum appropriate
reimbursement
• Claims must comply with– Federal and state law– Payer requirements
Code Linkage
• Analysis of the connection between diagnostic and procedural information to evaluate medical necessity
Code Linkage (cont.)
• Codes are checked against the medical documentation
• Coding audit: – Are codes appropriate and is each coded service
billable?– Is code linkage correct?– Have rules ben followed?– Does documentation support services?– Do reported services comply with regulations?
Insurance Fraud
• Investigators look for patterns such as– Reporting services that were not performed
– Reporting services at a higher level
– Performing and billing for procedures not related to the patient’s condition and therefore not medically necessary
Insurance Fraud (cont.)
• Patterns (cont.)
– Unbundling
– Reporting the same service twice
• Copayments– Waiver may violate payer policies– Ensure policies are consistent with law and
requirements of payers
Compliance Plans
• Process for finding, correcting, and preventing illegal medical practices
• Goals of compliance plan– Prevent fraud and abuse
– Ensure compliance with applicable laws
– Help defend physicians if investigation occurs
Compliance Plans (cont.)
• Developed by a compliance officer and committee who also:
– Audit and monitor compliance with government regulations
– Develop consistent written policies and procedures
– Provide ongoing staff training and communication
– Respond to and correct errors
The End