- ICD-10-CM
- The U.S. diagnosis code set (Clinical Modification), maintained by NCHS; used to report diagnoses in all care settings. Codes are 3–7 characters.
- ICD-10-PCS
- The procedure code set for inpatient hospital procedures, maintained by CMS. Every code is exactly 7 characters.
- CPT
- Current Procedural Terminology — the AMA code set (HCPCS Level I) for physician and outpatient procedures and services; 5-digit codes.
- HCPCS Level II
- An alphanumeric CMS code set (one letter + four digits) for drugs, supplies, DME, and ambulance — items not in CPT.
- Principal diagnosis
- The condition established after study to be chiefly responsible for occasioning the patient's admission to the hospital (UHDDS definition).
- First-listed diagnosis
- The outpatient counterpart to the principal diagnosis — the main reason, established at that encounter, for the visit or service.
- What does 'after study' mean in the principal diagnosis definition?
- The diagnosis is selected based on the complete workup during the stay, not the admitting impression — so it may differ from the admitting diagnosis.
- Excludes1
- An ICD-10-CM note meaning 'not coded here' — the two conditions are mutually exclusive and can never be reported together.
- Excludes2
- An ICD-10-CM note meaning 'not included here' — the conditions are separate, so both may be coded when each is documented.
- Combination code
- A single ICD-10-CM code that classifies two diagnoses, or a diagnosis with an associated manifestation or complication.
- Etiology / manifestation convention
- Code the underlying condition (etiology) first, then the manifestation. A manifestation code can never be sequenced first.
- 'Code first' note
- An ICD-10-CM instruction to sequence the underlying condition (etiology) before the current code.
- 'Use additional code' note
- An ICD-10-CM instruction to assign an additional code, usually sequenced after the underlying condition, to fully describe it.
- 'In diseases classified elsewhere'
- Signals a manifestation code that is never sequenced first; the underlying etiology must be coded and sequenced before it.
- 7th character A (injury)
- Initial encounter — the patient is receiving active treatment for the injury.
- 7th character D (injury)
- Subsequent encounter — routine care during the healing or recovery phase.
- 7th character S (injury)
- Sequela — a residual late effect of an injury or its treatment.
- Placeholder X (ICD-10-CM)
- Holds an empty character position so a required 7th character lands in the correct slot.
- NEC
- Not elsewhere classifiable — the condition is specified but the classification lacks a more precise code.
- NOS
- Not otherwise specified — equivalent to 'unspecified' in the Tabular List.
- Index then Tabular rule
- Find the term in the Alphabetic Index, then verify the code in the Tabular List — never code from the Index alone.
- Cooperating parties (ICD-10-CM guidelines)
- CMS, NCHS, AHA, and AHIMA — the four parties that develop and approve the Official Guidelines.
- Conventions vs guidelines precedence
- The Tabular List and Alphabetic Index instructions (conventions) take precedence over the general coding guidelines.
- Outpatient uncertain diagnosis rule
- Never code a 'probable,' 'suspected,' or 'rule out' condition as confirmed — code the signs, symptoms, or reason for the visit.
- Inpatient uncertain diagnosis rule
- A diagnosis documented as 'suspected' but not ruled out at discharge may be coded as if it existed.
- Signs and symptoms integral to a diagnosis
- Not coded separately when they are routinely associated with the established underlying condition.
- 'See' cross-reference
- A mandatory instruction in the Alphabetic Index to refer to the alternative term indicated.
- Section IV (ICD-10-CM guidelines)
- Diagnostic coding and reporting guidelines for outpatient services, including first-listed diagnosis selection.
- ICD-10-PCS character 1
- Section — e.g., 0 = Medical and Surgical.
- ICD-10-PCS character 2
- Body System — the general body system.
- ICD-10-PCS character 3
- Root Operation — the objective of the procedure; the most-tested PCS character.
- ICD-10-PCS character 4
- Body Part — the specific anatomical site.
- ICD-10-PCS character 5
- Approach — the technique used to reach the site (open, percutaneous, etc.).
- ICD-10-PCS character 6
- Device — any device left in place at the end of the procedure.
- ICD-10-PCS character 7
- Qualifier — additional distinguishing detail about the procedure.
- Root operation Excision
- Cutting out or off, without replacement, a PORTION of a body part.
- Root operation Resection
- Cutting out or off, without replacement, ALL of a body part.
- Excision vs Resection
- Excision removes part of a body part; Resection removes all of a defined body part (e.g., a whole lung lobe).
- Letters O and I in ICD-10-PCS
- Never used — to avoid confusion with the digits 0 and 1.
- PCS Tables
- The grids from which each of the 7 characters of an ICD-10-PCS code is selected and built.
- CPT = HCPCS Level I
- CPT is the AMA code set for physician/outpatient procedures; HCPCS Level II covers what CPT does not.
- Office/outpatient E/M leveling (2021+)
- Leveled by Medical Decision Making (MDM) OR total time on the encounter date; history and exam no longer set the level.
- MDM elements (need 2 of 3)
- Problems addressed, amount/complexity of data reviewed, and risk of complications.
- E/M new patient definition
- A patient not seen by the provider — or same-specialty provider in the group — within the prior 3 years.
- E/M established patient
- A patient seen by the provider or same-specialty group within the prior 3 years.
- Office/outpatient E/M code range
- 99202–99215 (99202–99205 new, 99211–99215 established).
- Modifier 25
- A significant, separately identifiable E/M service by the same provider on the same day as a procedure.
- Modifier 59
- Distinct procedural service — flags a procedure not normally reported together that is appropriate here.
- Modifier 50
- Bilateral procedure — performed on both the left and right sides in one operative session.
- Modifier 26
- Professional component — the physician's interpretation and report only.
- Modifier TC
- Technical component — the equipment, supplies, and technician only.
- Modifier 91
- Repeat clinical diagnostic laboratory test performed the same day to obtain a new result.
- HCPCS J codes
- Report injectable and infusion drugs by dosage amount.
- HCPCS E codes
- Report durable medical equipment (DME), such as a wheelchair.
- HCPCS A codes
- Report ambulance/transportation and medical & surgical supplies.
- HCPCS Level II code format
- One alphabetic letter followed by four numeric digits.
- Sequela coding sequence
- Code the resulting condition first, then the sequela code with 7th character S.
- Two conditions equally meeting principal diagnosis
- When no guideline directs otherwise, either condition may be sequenced as principal.
- Prospective payment system (PPS)
- Reimburses a provider a predetermined, fixed amount tied to the case or service, rather than the provider's actual charges.
- PPS incentive
- Because payment is fixed regardless of actual cost, facilities are incentivized to manage resources efficiently.
- MS-DRG
- Medicare Severity Diagnosis-Related Group — the inpatient payment group based on clinically and resource-similar cases, refined by severity.
- What drives MS-DRG assignment?
- The principal and secondary diagnoses, procedures, sex, and discharge status.
- CC (complication or comorbidity)
- A secondary diagnosis that can raise a case to a higher-weighted MS-DRG.
- MCC (major complication or comorbidity)
- A more severe secondary diagnosis that can raise a case to an even higher-weighted MS-DRG.
- MS-DRG relative weight
- Represents the relative resource intensity of cases in that group compared with the average case.
- Inpatient base payment formula
- MS-DRG relative weight multiplied by the hospital's base payment rate.
- Case-mix index (CMI)
- The average of a facility's MS-DRG relative weights; a higher CMI means a more complex, resource-intensive patient mix.
- Why secondary-diagnosis coding affects the CMI
- Captured CCs/MCCs raise MS-DRG weights, which raises the average (the CMI).
- IPPS
- The Medicare inpatient prospective payment system — pays a fixed amount per inpatient discharge using MS-DRGs.
- APC
- Ambulatory Payment Classification — the outpatient prospective payment grouping under OPPS, paying per service or procedure.
- OPPS
- The Medicare hospital outpatient prospective payment system — pays per outpatient service using APCs.
- MS-DRG vs APC
- MS-DRGs pay per inpatient discharge (IPPS); APCs pay per outpatient service/procedure (OPPS).
- Comprehensive APC
- Pays a single all-inclusive amount for a primary service plus its associated adjunctive services.
- OPPS status indicator
- Tells how a service is paid — e.g., packaged into another service's payment rather than paid separately.
- Outlier payment
- An additional PPS payment for an unusually costly case far exceeding the typical cost of its group.
- Major diagnostic category (MDC)
- A broad clinical category under which DRGs are organized, generally by body system or etiology.
- Chargemaster (CDM)
- A facility's master list of billable items and services, each with a charge code, description, amount, and CPT/HCPCS code.
- CDM line-item elements
- A charge code, item description, charge amount, and associated CPT or HCPCS code.
- Why review the CDM regularly?
- To keep CPT/HCPCS codes current and prevent claim denials or incorrect payment; ideally at least annually.
- Hard-coded vs soft-coded charges
- Hard-coded services flow through the CDM automatically; soft-coded services are assigned by a coder reviewing documentation.
- NCCI edits
- CMS edits that prevent improper payment: procedure-to-procedure (PTP) edits and Medically Unlikely Edits (MUEs).
- PTP edit
- A procedure-to-procedure edit that stops unbundling of code pairs that should be reported together.
- MUE (Medically Unlikely Edit)
- Caps the maximum units of a HCPCS/CPT code reportable for one patient on one day.
- NCCI modifier indicator 0
- No modifier can override the edit — the codes cannot be unbundled.
- NCCI modifier indicator 1
- A modifier (such as 59) may bypass the edit when clinically justified and documented.
- Why principal diagnosis selection has financial weight
- It helps determine the MS-DRG, which drives the inpatient payment amount.
- RBRVS
- The Resource-Based Relative Value Scale underlying the Medicare Physician Fee Schedule (work + practice-expense + malpractice RVUs).
- UB-04 claim form
- The institutional/facility claim form used to bill for hospital and facility services (CMS-1450).
- CMS-1500 claim form
- The claim form used to bill for physician and other professional (non-institutional) services.
- Revenue cycle
- The set of administrative and clinical functions that capture, manage, and collect patient-service revenue, from registration to final payment.
- Effect of a deleted code in an outdated CDM
- Claims using the deleted code may be denied or rejected.
- Why two same-principal-diagnosis cases differ in DRG
- One had a documented complication or comorbidity that shifted it to a higher-severity group.
- Master patient index (MPI)
- The permanent database that links a unique identifier to each patient and all of their encounters — the backbone of the HIS.
- Purpose of searching the MPI before registration
- To prevent creating a duplicate entry for a patient who already exists in the system.
- Duplicate medical record
- Two or more records created for the same patient — fragments care and creates billing and patient-safety risk.
- Good patient identifier for the MPI
- Unique to one patient and stable across all encounters.
- UHDDS
- Uniform Hospital Discharge Data Set — standard data elements reported for hospital inpatients; source of the principal-diagnosis definition.
- UHDDS significant procedure
- A procedure that carries a procedural or anesthetic risk, requires special training, or is surgical in nature.
- UACDS
- Uniform Ambulatory Care Data Set — standardizes data collection for outpatient/ambulatory care visits.
- Why standardized data sets matter
- Every facility reports the same defined elements the same way, making the data comparable across facilities.
- Data vs information
- Data are raw, unprocessed facts; information is data organized and interpreted to be meaningful and useful.
- Authentication of a record entry
- Verification by the author who is responsible for the entry — e.g., a signature; one author cannot sign for another.
- Late entry in a record
- Must clearly state it is a late entry and reflect when the information was actually documented.
- Correcting a signed electronic entry
- Enter an addendum or amendment that links to the original while preserving (never obscuring) the original content.
- Why records must never be altered to obscure content
- Obscuring original content destroys the record's integrity and its value as legal and clinical evidence.
- History and physical (H&P)
- Documents the chief complaint and establishes the patient's baseline condition.
- Operative report contents
- The preoperative and postoperative diagnoses, the procedure performed, and the surgeon's findings.
- Discharge summary contents
- The reason for admission, significant findings, procedures/treatment, condition at discharge, and follow-up.
- Legal health record
- The defined set of documents an organization would produce as its official record for legal purposes.
- Disease index
- Organizes patient records by the diagnosis codes assigned during their care.
- Registry vs index
- A registry collects more detailed clinical data on a specific population or condition than an index does.
- AHIMA data-quality model
- Defines characteristics such as accuracy, completeness, consistency, and timeliness for health data.
- Data accuracy
- The data-quality characteristic that data are correct and free of error.
- Single-source data capture
- Capture each data element once at its source and reuse it to reduce duplicate, inconsistent entry.
- Electronic signature requirement
- Must uniquely identify the author and be applied under that author's control.
- Required element on every entry
- The date the entry was made (plus authentication by its author).
- MPI as the foundation of the HIS
- Nearly every other system relies on it to correctly identify and link a patient's information.
- Discharge disposition standardization
- Using standard categories lets disposition data be compared reliably across facilities.
- Fraud (health care)
- Knowing and intentional deception or misrepresentation to obtain an unauthorized benefit, such as billing for services not rendered.
- Abuse (health care)
- Practices inconsistent with sound fiscal or medical practice that cause unnecessary cost, without the same proven intent.
- Fraud vs abuse — the dividing line
- Intent. Fraud requires knowing, intentional deception; abuse does not.
- Upcoding
- Assigning a code that reflects a more severe diagnosis or more expensive service than the documentation supports.
- Unbundling
- Billing component codes separately when a single comprehensive code should be reported, to obtain higher payment.
- Example of upcoding
- Routinely selecting the highest-level E/M code on every chart regardless of documentation.
- False Claims Act
- A federal law imposing liability on anyone who knowingly submits, or causes to be submitted, false claims to Medicare.
- 'Knowingly' under the False Claims Act
- Includes actual knowledge, deliberate ignorance, and reckless disregard of the truth — not just intent to defraud.
- Qui tam action
- A whistleblower lawsuit allowing a private individual to sue on the government's behalf and share in any recovery.
- Handling a discovered Medicare overpayment
- Report and return it within the required timeframe to avoid False Claims Act liability.
- Anti-Kickback Statute
- Prohibits knowingly offering, paying, soliciting, or receiving remuneration to induce referrals of covered items or services.
- Stark Law (physician self-referral)
- Generally restricts a physician from referring Medicare patients to an entity with which they have a financial relationship, unless an exception applies.
- OIG Work Plan
- Identifies the areas the HHS Office of Inspector General intends to review or audit — signals compliance-risk focus.
- OIG compliance program core elements
- A designated compliance officer/committee, training, auditing/monitoring, and a confidential reporting hotline, among others.
- Confidential reporting hotline
- Lets employees report concerns and protects good-faith reporters from retaliation.
- LEIE
- The OIG List of Excluded Individuals and Entities — check it before employing or contracting with anyone.
- Effect of OIG exclusion
- The excluded party's claims are no longer paid by Medicare/Medicaid, and others may face penalties for using them.
- Recovery Audit Contractor (RAC)
- Reviews Medicare claims to identify and correct improper payments — both overpayments and underpayments.
- AHIMA Standards of Ethical Coding
- Direct coders to assign codes based on provider documentation in the record and applicable coding guidelines.
- Physician query
- A compliant, non-leading request to a provider to clarify conflicting, incomplete, or ambiguous documentation before coding.
- When to query the provider
- When documentation is conflicting, incomplete, ambiguous, or imprecise and the missing detail affects code assignment.
- Diagnosis only in a nursing note
- Generally requires provider documentation — query the provider before coding it.
- Coder pressured to assign an unsupported code
- Refuse to assign it and report the concern through the established compliance channel.
- Why upcoding is serious even if believed harmless
- It produces payment not supported by documentation, which can constitute fraud.
- Inappropriate-access discovery
- Report a colleague viewing records they have no business reason to access through the facility's privacy/compliance process.
- Computer-assisted coding (CAC)
- Software that scans clinical documentation and suggests candidate codes for a coder to review and validate.
- Technology underlying CAC
- Natural language processing (NLP), which extracts clinical concepts from free-text documentation.
- Coder's role with CAC suggestions
- Validate each suggested code against the documentation and edit or delete as needed — suggestions are not final.
- CAC confirmation vs auto-finalize
- A confirmation workflow is safer because NLP suggestions still require coder review before finalizing.
- Monitoring CAC accuracy
- Audit a sample of CAC-assisted charts against documentation for accuracy.
- Encoder software
- Helps a coder select and validate diagnosis and procedure codes during the coding process.
- Logic-based (knowledge-based) encoder
- Prompts the coder with sequencing edits and questions that mirror the coding guidelines.
- Grouper software
- Assigns coded data to a payment group, such as an MS-DRG, based on the codes entered.
- Encoder vs grouper
- An encoder helps select/validate codes; a grouper assigns the case to a payment group.
- Lower-than-expected MS-DRG from a grouper
- Verify that all relevant secondary diagnoses and their POA status were coded.
- Audit trail (audit log)
- Records who accessed or modified a patient record, and when.
- Role-based access control
- Limits each user's access to the record functions appropriate to that person's job role.
- EHR keyword search
- Helps a coder quickly locate terms across the record, reducing search time.
- Confirming a definitive diagnosis in the EHR
- Look to provider documentation such as the operative report and the discharge summary.
- Conflicting EHR documentation
- Initiate a physician query to resolve the conflict before coding.
- Structured data in the EHR
- Standardized data elements and code sets that ease retrieval and improve data quality.
- Present on admission (POA) indicator
- Shows whether a diagnosis was present at the time of inpatient admission; it affects MS-DRG payment and is grouper input.
- HIPAA
- The Health Insurance Portability and Accountability Act — its Privacy and Security Rules protect protected health information.
- Protected health information (PHI)
- Individually identifiable health information held or transmitted by a covered entity in any form — electronic, paper, or oral.
- Minimum necessary standard
- Limit the use, disclosure, and request of PHI to the least amount needed to accomplish the intended purpose.
- Minimum necessary exceptions
- Does not apply to disclosures for treatment, or to disclosures made under the patient's authorization.
- Incidental disclosure
- A permitted secondary exposure of PHI when reasonable safeguards and the minimum necessary standard are followed.
- Psychotherapy notes
- Kept separate from the rest of the record; generally require a specific authorization to disclose, even for routine purposes.
- Personal representative (HIPAA)
- A person with legal authority to make health care decisions for the patient, such as a health-care proxy.
- PHI protection after death
- Continues for 50 years after the date of death under the HIPAA Privacy Rule.
- Right of access
- A patient's right to obtain a copy of their own record, generally within 30 days (with one possible 30-day extension).
- Right to amend
- A patient's right to request a correction to PHI in the designated record set.
- Right to confidential communications
- A patient's right to be contacted by a chosen method or at a chosen location.
- Accounting of disclosures
- A list of certain PHI disclosures; it generally excludes treatment, payment, and health care operations disclosures.
- Revoking an authorization
- Must be done in writing; after revocation, further disclosures under it are not permitted.
- Verifying a requester before release
- Confirm the identity and authority of the requester before disclosing any PHI.
- Attorney-only subpoena
- Requires satisfactory assurances (patient notice or a protective order) before PHI is disclosed.
- Reasonable cost-based fee for record copies
- A patient may be charged a reasonable, cost-based fee limited to copying, supplies, and labor for the copy.
- Sanctions for a HIPAA violation
- Penalties applied against workforce members who fail to comply with the entity's privacy policies.
- Limited data set
- A data set stripped of most direct identifiers, shareable for research under a data use agreement.
- Data use agreement
- An agreement committing a recipient of a limited data set to safeguard the information and limit its use.
- Substance-use-disorder treatment records (42 CFR Part 2)
- Carry more stringent consent requirements and limits on redisclosure than general HIPAA PHI.
- Public-health disclosure & minimum necessary
- Disclose only the information reasonably needed for the public-health purpose.
- Covered entity
- A health plan, health care clearinghouse, or health care provider that transmits health information electronically — bound by HIPAA.
- ICD-10-CM code length
- Codes are 3 to 7 characters, with a decimal placed after the 3rd character.
- First 3 characters of an ICD-10-CM code
- The category — the broad disease or condition group.
- Root operation Bypass
- Altering the route of passage of the contents of a tubular body part.
- Root operation Insertion
- Putting in a nonbiological device that monitors, assists, performs, or prevents a physiological function.
- Root operation Removal
- Taking out or off a device from a body part.
- Root operation Detachment
- Cutting off all or part of an extremity (amputation).
- Approach: Open
- Cutting through the skin or mucous membrane to expose the procedure site.
- Approach: Percutaneous
- Entry by puncture or minor incision to reach the procedure site.
- Approach: Percutaneous endoscopic
- Entry by puncture/minor incision plus visualization with an endoscope.
- Manifestation code
- A code that describes a manifestation of an underlying disease and can never be sequenced first.
- Default code (ICD-10-CM)
- The code listed next to a main term in the Index, representing the condition most commonly associated with that term.
- 'With' convention
- Terms linked by 'with' in the Index or Tabular are assumed related unless documentation indicates otherwise.
- Laterality (ICD-10-CM)
- Many codes specify right, left, or bilateral; assign the correct side from documentation.
- CPT Category II codes
- Optional performance-measure tracking codes that end in the letter F.
- CPT Category III codes
- Temporary codes for emerging technology, services, and procedures, ending in the letter T.
- Time-based critical care
- 99291 reports the first 30–74 minutes; +99292 each additional 30 minutes.
- Z codes (ICD-10-CM)
- Report encounters for reasons other than disease/injury, such as exams, screenings, and aftercare.
- External cause codes
- Capture how an injury happened (cause, intent, place, activity); never sequenced as principal/first-listed.
- Charge vs reimbursement
- A charge is what a facility lists for a service; reimbursement is what the payer actually pays (often a set PPS amount).
- Per diem payment
- A fixed payment amount per day of care, regardless of the actual services delivered that day.
- Capitation
- A fixed payment per member per month to cover a defined set of services, regardless of utilization.
- Fee-for-service
- Payment for each individual service provided — the opposite of a bundled/prospective amount.
- Remittance advice
- The payer's explanation accompanying payment, detailing how each claim line was adjudicated.
- Clean claim
- A claim with no errors or missing information that can be processed without additional data.
- Claim denial
- A payer's refusal to pay a claim, often due to coding, coverage, or documentation issues.
- Local Coverage Determination (LCD)
- A coverage decision made by a Medicare Administrative Contractor for its region.
- National Coverage Determination (NCD)
- A nationwide Medicare coverage decision made by CMS.
- Medical necessity
- The principle that a service must be reasonable and necessary; the diagnosis must support the procedure billed.
- Advance Beneficiary Notice (ABN)
- A notice to a Medicare patient before a likely-noncovered service, shifting financial responsibility to the patient.
- Designated record set
- The group of records a covered entity uses to make decisions about a patient; subject to access and amendment rights.
- Demographic data
- Patient identifying information such as name, address, date of birth, and sex.
- Clinical data
- Documentation of the patient's health condition, care, and treatment within the record.
- Data completeness
- The data-quality characteristic that all required data elements are present.
- Data timeliness
- The data-quality characteristic that data are recorded and available when needed.
- Patient registry
- A collection of detailed data on patients with a specific diagnosis or condition (e.g., a cancer registry).
- Compliance program purpose
- To prevent, detect, and correct violations of law and improper coding/billing within an organization.
- Internal audit (coding)
- A periodic review of coded records against documentation to find and correct errors before claims go out.
- Non-leading query
- A query that asks the provider to clarify without suggesting a specific answer that would increase payment.
- Sentinel effect
- The improvement in behavior that results from knowing one's work is being monitored or audited.
- HIPAA Security Rule scope
- Protects electronic PHI (ePHI) through administrative, physical, and technical safeguards.
- Natural language processing (NLP)
- Technology that interprets human (free-text) language so software can extract clinical concepts for coding.
- Clinical documentation improvement (CDI)
- A program that works with providers to ensure documentation accurately reflects severity and supports coding.
- Data integrity
- The accuracy, completeness, and consistency of data over its entire lifecycle.
- Interoperability
- The ability of different health IT systems to exchange and use data with one another.
- Business associate
- A person/entity that performs functions involving PHI on behalf of a covered entity; bound by a BAA.
- Business associate agreement (BAA)
- A contract requiring a business associate to safeguard PHI per HIPAA.
- Breach (HIPAA)
- An impermissible use or disclosure of unsecured PHI that compromises its security or privacy.
- De-identified information
- Health data stripped of identifiers so it is no longer PHI and falls outside HIPAA restrictions.
- Treatment, payment & operations (TPO)
- The core uses/disclosures of PHI permitted without separate authorization.