General Coding Guidelines for Medical and Surgical Procedures
Learning Objectives
2. Define significant procedures
3. Explain the surgical hierarchy
4. Assign codes for canceled, converted to open procedures, and bilateral procedures
5. Explain the purpose of a facility policy for procedure coding
6. Discuss the differences between ICD-9-CM, Volume 3, and ICD-10-PCS
7. Explain the use of the General Equivalence Mappings
8. Identify the format of ICD-10-PCS, Alphabetic Index, and PCS Tables
9. Define the root operations for the medical and surgical section of ICD-10-PCS
10. Define the approaches that are used in the medical and surgical section of ICD-10-PCS
Abbreviations/Acronyms
BMI body mass index
CMS Centers for Medicare and Medicaid Services
COPD chronic obstructive pulmonary disease
CPT Current Procedural Terminology
ECMO extracorporeal membrane oxygenation
GEMS General Equivalence Mappings
HCPCS Healthcare Common Procedure Coding System
ICD-9-CM International Classification of Diseases, 9th Revision, Clinical Modification
ICD-10-CM International Classification of Diseases, 10th Revision, Clinical Modification
ICD-10-PCS International Classification of Diseases, 10th Revision, Procedure Coding System
MS-DRG Medicare Severity diagnosis-related group
NCHS National Center for Health Statistics
NEC not elsewhere classifiable
NPI National Provider Identifier
OB obstetrics
PPN peripheral parenteral nutrition
PTCA percutaneous transluminal coronary angioplasty
UHDDS Uniform Hospital Discharge Data Set
UHDDS definitions
Uniform Hospital Discharge Data Set (UHDDS) definitions are used by acute care, short-term hospitals to report inpatient data elements in a standardized manner. Definitions that pertain to the assignment of procedure codes are presented in the following sections.
Principal Procedure
A principal procedure is one that was performed for definitive treatment rather than for diagnostic or exploratory purposes, or one necessary to take care of a complication. If two procedures appear to meet this definition, then the one most closely related to the principal diagnosis should be selected as the principal procedure.
Significant Procedure
To qualify as a significant procedure, one of the following criteria must be met:
It should be noted that a significant procedure does not have to be performed in an operating room (OR). Procedures can be done in the Emergency Room (ER) before admission, at the patient’s bedside, in a treatment room, or in an interventional radiology department. These procedures can be easily missed because an operative report describing the procedure may not have been completed. Often, these procedures are documented with a brief, handwritten note on the ER record or in a progress note. Consent for treatment may assist the coder in attempting to verify a procedure, but not all procedures require consent forms. Also, a signed consent form does not confirm that the procedure was actually performed. A complete review of the entire health record is necessary to ensure that all completed procedures have been coded.
Other UHDDS data elements that must be coded include the date of the procedure and the National Provider Identifier (NPI) of the person who performed the procedure. It may be the coder’s responsibility to abstract these data elements.
Procedure Codes That Should Be Reported
Any procedures that affect payment or reimbursement must be reported. Other procedures may be reported at a hospital’s discretion or in accordance with hospital policy. Encoders (coding software) may also have special popup notices that alert the coder about noncovered or limited coverage OR procedures.
After assigning procedure codes, the coder should review the diagnosis codes to ensure the assignment of diagnosis codes that support the performance of a procedure.
The Centers for Medicare and Medicaid Services (CMS) has categorized procedures into different classifications through the Medicare Code Editor (MCE). In some code books, these procedures may be highlighted to facilitate assignment of procedure codes. The Medicare Code Editor is software that detects errors in coding on Medicare claims. For example, it would identify a male-only procedure coded on a female patient’s record.
During a patient’s hospitalization, it may be necessary for a procedure to be performed at an outside facility. This could be for reasons such as the service may not be offered at the admitting hospital or equipment may malfunction. The patient may be transported by ambulance to this outside facility, and after the procedure, return for continued care at the admitting hospital. In these cases, the admitting hospital may assign procedure codes for services performed at the outside facility. The admitting hospital also would include these charges on the hospital bill, and the admitting hospital would reimburse the outside facility for the procedure.
Valid OR Procedure
A valid OR procedure is a procedure that may affect MS-DRG assignment.
Designation of a procedure as a valid OR procedure does not mean that it must be performed in the inpatient setting. Many surgical procedures can be safely performed on an outpatient basis, and many third party payers and/or insurance companies require that certain surgical procedures be performed in an outpatient setting. Repair of direct inguinal hernia is designated as a valid OR procedure, but this procedure is usually performed and billed as an outpatient procedure.
Non-OR Procedure Affecting MS-DRG Assignment
A procedure designated as a “non-OR procedure affecting MS-DRG assignment” is a procedure that may affect MS-DRG assignment, even though the procedure is not routinely performed in the OR.
In some cases, the procedure code will make a difference in MS-DRG assignment; in other cases, it will not.
In this case, the codes group to a surgical MS-DRG: MS-DRG 675, Other Kidney & Urinary Tract Procedures without CC/MCC.
In this case, the codes group to a medical MS-DRG: MS-DRG 437, Malignancy of Hepatobiliary System or Pancreas without CC/MCC.
Noncovered OR Procedure
Noncovered OR procedure codes are identified by the Medicare Code Editor as procedures for which Medicare does not provide reimbursement.
Sterilization procedures are usually not covered by Medicare. It is possible to assign an MS-DRG, but that does not guarantee payment.
Limited Coverage
Limited coverage procedures are identified by the Medicare Code Editor as procedures covered under limited circumstances.
For a transplant facility to obtain Medicare coverage for organ transplantation, it must meet preapproved guidelines. Criteria are set forth and updated in Federal Register notices.
Surgical Hierarchy
The MS-DRG grouper software (computer program that assigns an MS-DRG), using diagnosis and procedure codes, identifies whether a particular patient falls into a medical MS-DRG or a surgical MS-DRG. The MS-DRG grouper is able to determine which procedure is the most resource intensive and assigns the procedure to that particular surgical MS-DRG.
In this case, the patient was admitted and after study was determined to have breast cancer of the right upper outer quadrant. She also has a comorbidity of Crohn’s disease. The principal procedure is one that is performed for definitive treatment; in this case, that would be the simple mastectomy. The mastectomy is more resource intensive than a breast biopsy. It is appropriate to code the diagnostic breast biopsy as an additional procedure code.
In this case, all the codes are the same, but the breast biopsy is incorrectly sequenced as the principal procedure instead of the mastectomy. Because of the surgical hierarchy within the grouper, it groups to the mastectomy MS-DRG, so the reimbursement and MS-DRG assignment would be correct. Even if the grouper will automatically arrange the codes to fit the surgical hierarchy, the code should be sequenced as the principal procedure on the basis of the UHDDS definition.
In this case, a data entry error was made, and Crohn’s disease was incorrectly sequenced as the principal diagnosis, resulting in a 983 MS-DRG assignment. Although MS-DRG 983 may be the correct assignment in some cases, it is not appropriate in this case, and the coder should review the entered codes.
In this case, the principal diagnosis combined with the procedure codes resulted in the MS-DRG assignment. If the data entry error had not been corrected before billing, the facility would have been incorrectly reimbursed.
Closed Surgical Procedures and Conversion to Open Procedures
As technology has advanced, procedures are increasingly being performed through scopes, which are less invasive than open procedures. This has resulted in quicker recoveries, shorter hospital stays, and fewer complications.
Common closed surgical approaches include laparoscopic, thoracoscopic, and arthroscopic procedures. The laparoscopic approach involves use of a laparoscope to examine and perform closed procedures within the abdomen. With a thoracoscopic approach, a thoracoscope is used to examine and perform closed procedures within the thorax. The arthroscopic approach requires the use of an arthroscope to examine and perform closed procedures within a joint. Closed procedures may be diagnostic and/or therapeutic in nature.
A surgical procedure may start with an endoscopic approach that may need to be converted to an open procedure. Some reasons for conversion to an open procedure include adhesions, bleeding, technical difficulties due to anatomic body structure and/or inflammatory changes, and injury to an organ. The reason for converting to an open procedure should be coded. According to ICD-10-PCS guidelines, two procedure codes are necessary: one for the endoscopic procedure and one for the open procedure. The root operation for the endoscopic procedure code may be inspection.
Planned and Canceled Procedures
When patients are admitted to the hospital for a scheduled procedure(s), under some circumstances, the procedure(s) may be canceled or not completed. If a patient’s procedure is canceled prior to the time that he or she presents to the hospital, no code will be required because no services were provided, no bill was generated, and there is no health record. On some occasions, a patient presents to have a procedure performed, but for whatever reason the procedure has to be canceled. The principal diagnosis in this case is the reason why the patient was going to have the procedure performed. If a complication arose that resulted in the cancellation, a diagnosis code for that condition would be assigned as a secondary diagnosis. Also, Z codes describe the reason for the cancellation. They can be located in the Index under the main term, procedure (surgical) not done.
Z53.01 | Procedure and treatment not carried out due to patient smoking |
Z53.09 | Procedure and treatment not carried out because of other contraindication |
Z53.1 | Procedure and treatment not carried out because of patient’s decision for reasons of belief and group pressure |
Z53.20 | Procedure and treatment not carried out because of patient’s decision for unspecified reasons |
Z53.21 | Procedure and treatment not carried out due to patient leaving prior to being seen by health care provider |
Z52.29 | Procedure and treatment not carried out because of patient’s decision for other reasons |
Z53.8 | Procedure and treatment not carried out for other reasons |
Z53.9 | Procedure and treatment not carried out, unspecified reason |
Occasionally, a surgical procedure will be started that for whatever reason cannot be completed. The surgical procedure should be coded to the extent that it was performed. These circumstances are different from those surrounding a procedure that is canceled, in that the patient received anesthesia and surgery was begun.
Bilateral Procedures
A bilateral procedure occurs when the same procedure is performed on paired anatomic organs or tissues (i.e., eyes, ears, joints such as shoulder or knee). According to ICD-10-PCS guidelines, if the identical procedure is performed on contralateral body parts, and a bilateral body part value exists for that body part, a single procedure code using the bilateral body part value is assigned. If no bilateral body part value exists, each procedure is coded separately.
As procedures become less invasive, more bilateral procedures may be performed during the same operative episode.
Facility Policy
Each facility should have its own written policy regarding the assignment of ICD-10 procedure codes. This policy should consider reimbursement, but it should also take into account other uses of a procedure database and how that information can be extracted. It may be necessary to determine what types of procedures are being performed for physician profiles and credentialing. Research is an important aspect of data collection.
As has been stated previously, because not all procedures are performed in the operating room, it may be difficult to locate documentation of all procedures performed. Procedures that are easy to overlook include mechanical ventilation, debridement, lumbar puncture, suturing, ECMO (extracorporeal membrane oxygenation), and procedures performed by interventional radiology.
History of ICD-10-PCS
In 1992, the Centers for Medicare and Medicaid Services (CMS) funded a project to replace Volume 3 of ICD-9-CM, which was outdated and could not be expanded to classify procedures with more specific detail. 3M Health Information Systems was awarded a contract to develop a new system for procedural coding, ICD-10-PCS (Procedure Coding System). ICD-10-PCS was initially released in 1998. Since that time, it has been updated to incorporate changes that were made to ICD-9-CM, Volume 3. CMS is responsible for the maintenance of ICD-10-PCS. (Information about ICD-10-PCS is available on the CMS website.)
According to the National Center for Health Statistics (NCHS), the proposed implementation date for ICD-10-PCS is October 1, 2014.
The ICD-10 Procedure Coding System was developed with four characteristics in mind:
1. Completeness—Each procedure should have its own code.
2. Expandability—New procedure codes should be easily added (unlimited number of codes).
3. Multiaxial—Each code character should have the same meaning across and within body systems.
Other principles followed in the development of ICD-10-PCS include:
• Diagnostic information is not included in the procedure description.
• A “not otherwise specified” (NOS) option is not available.
• The “not elsewhere classifiable” (NEC) option is limited.
• All procedures are defined to a high level of specificity.
Differences Between ICD-9-CM and ICD-10-PCS
ICD-9-CM | ICD-10-PCS |
Structure is similar to ICD-9 diagnosis codes | Structure is different with the use of tables |
Limited number of codes | Expandable with unlimited number of codes |
Codes are three to four digits with a decimal | All codes are seven characters, with no decimal after the second character |
Codes are numeric | Codes are alphanumeric |
10 different values can be used for each digit, 0 through 9 | 34 different values can be used for each character, for numbers 0 through 9, and A through Z except for the letters I and O |
Combination codes (e.g., tonsillectomy with adenoidectomy) | Separate procedures performed at the same time are coded separately |
Mapping
Because of the drastic changes in structure and specificity, it is difficult to provide an accurate cross-reference between ICD-9-CM and ICD-10-PCS. As with ICD-10-CM, two sets of procedure code General Equivalence Mappings (GEMs) have been developed. These mappings are a way to find corresponding procedure codes in the two code sets. The GEM files are located on the CMS website, and the two filenames appear below:
Exercise 6-1
Using the ICD-9-CM to ICD-10-PCS and ICD-10-PCS to ICD-9-CM GEMs files on the CMS website (see Figures 6-1 and 6-2), map the following procedure codes.
1. 45.76 | _______________ |
2. 51.23 | _______________ |
3. 69.02 | _______________ |
4. 0W9B3ZZ | _______________ |
5. ODJ68ZZ | _______________ |
6. 0YQ50ZZ | _______________ |
Answer the following questions.
7. ICD-10-PCS is proposed for full implementation on this date.
8. Who is responsible for the maintenance of ICD-10-PCS?
A. AHIMA
B. AMA
C. NCHS
D. CMS
9. The terminology used in ICD-10-PCS is such that multiple meanings can be used for the same term.
A. True
B. False
10. ICD-10-PCS is expandable with an unlimited number of codes.
A. True
B. False
Organization of ICD-10-PCS
All ICD-10-PCS codes are seven characters (no decimal points are used), with each character representing a particular aspect of the procedure. Each character is represented by a letter or a number and is referred to as a “value.” ICD-10-PCS codes are alphanumeric, so there are 34 possible values for each character, the numbers 0-9 and letters A-H, J-N, and P-Z. The letters I and O are not used in ICD-10-PCS.
The ICD-10-PCS is more complex than the ICD-9-CM procedure coding. The two chapters devoted to PCS coding in this text cover only the basics. There are numerous other resources available on the CMS website. One of the best resources is the 2013 Reference Manual, which is located on the CMS website: http://www.cms.gov/Medicare/Coding/ICD10/2013-ICD-10-PCS-GEMs.html.
Alphabetic Index and Tables
The ICD-10-PCS code book contains the Alphabetic Index and PCS Tables. Once you have become familiar with the table structure, it may not be necessary to even use the index, which is structured in a way that follows the organization of the tables but may only identify the first three or four characters of the procedure code. The two types of main terms that are listed in the Alphabetic Index are:
No eponyms or acronyms are used in the Alphabetic Index. The index is used to assist with the location of the appropriate table that has the information necessary to construct a seven-character procedure code.
The PCS Tables are divided into 16 sections that classify the type of procedure within each section. The first character of an ICD-10-PCS code identifies the section that describes the category where the code is located. Sections 1 through 9 are medical- and surgical-related sections. Sections B through D and F through H represent ancillary sections of ICD-10-PCS. The largest section is the Medical and Surgical section and has a first character value of 0. The 16 sections and the corresponding section values are as follows:
SECTION | SECTION VALUE/FIRST CHARACTER |
Medical and Surgical | 0 |
Obstetrics | 1 |
Placement | 2 |
Administration | 3 |
Measurement and Monitoring | 4 |
Extracorporeal Assistance and Performance | 5 |
Extracorporeal Therapies | 6 |
Osteopathic | 7 |
Other Procedures | 8 |
Chiropractic | 9 |
Imaging | B |
Nuclear Medicine | C |
Radiation Oncology | D |
Physical Rehabilitation and Diagnostic Audiology | F |
Mental Health | G |
Substance Abuse Treatment | H |
The Alphabetic Index assists with identifying the first three or four characters of a procedure code. Each table is identified by the first three characters of a procedure. In the Medical and Surgical section the first three characters identify the value for the following:
Each table contains four columns and a varying number of rows (Figure 6-4). Each column identifies the allowable values for characters 4-7. Each row identifies the valid combinations of values. For example, for the body parts anal sphincter (R), Greater Omentum (S), and Lesser Omentum (T), the only two valid approaches are open (0) and percutaneous endoscopic (4). Operative approach values 7 and 8 do not apply because they are not included in that row. The tables must always be used to assign a valid procedure code.
Exercise 6-2
Answer the following questions about the characters in an ICD-10-PCS code.
1. How many characters are in an ICD-10-PCS code? | _______________ |
2. Which character identifies the approach? | _______________ |
3. Which character identifies the body part? | _______________ |
Using the ICD-10-PCS, identify the section value for the following.
4. Radiation oncology | _______________ |
5. Administration | _______________ |
6. Other procedure | _______________ |
7. Obstetrics | _______________ |
8. Mental health | _______________ |
Using the Alphabetic Index only, identify the appropriate table for the following procedures.
9. Cholecystectomy | _______________ |
10. Replacement, right knee | _______________ |
11. Tracheostomy | _______________ |
12. Psychiatric medication management | _______________ |
13. Transfusion of platelets via peripheral vein | _______________ |
Using the table in Figure 6-4, answer the following questions.
Medical and Surgical Section
Because the Medical and Surgical section is the largest section, and the section that is used the most, we will use this section to learn more about the structure and standardized definitions that are utilized by ICD-10-PCS. The character value for the Medical and Surgical section is 0 (the digit, not the letter O). All the codes from the tables in the Medical and Surgical section begin with a zero.
The meanings of the seven characters for codes from the Medical and Surgical section are as follows:
CHARACTER | REPRESENTS |
1 | Section |
2 | Body system |
3 | Root operation |
4 | Body part |
5 | Approach |
6 | Device |
7 | Qualifier |
Body Systems
A body system defines an anatomic region or a general physiological system on which a procedure is performed. Some body systems may be further divided into multiple body systems. For example, the cardiovascular/circulatory system is divided into the following body systems:
The body systems or the second character for the Medical and Surgical section are as follows: