Risk of Patient Management

Question:

Our new surgeon wants to code a level five encounter for all patients where the patient is scheduled for inpatient surgery. He states he was educated that all outpatient surgeries are automatically a level four encounter, and all inpatient surgeries are automatically level five encounters. Have we been assigning the level of risk incorrectly?

Answer:

Unfortunately, it sounds as though the surgeon received incorrect information.

The risk of patient management (one of three MDM Elements) is based on the procedure risks and patient specific risks for the surgical procedure. Whether the surgery is inpatient or outpatient is not a factor in determining the risk level for the encounter.

Let’s look at CPT’s MDM table under “Risk of complications and/or morbidity or mortality of patient management as a possible source of confusion.

CPT provides several examples for high risk:

· “Decision regarding hospitalization or escalation of hospital level care.”

· “Decision regarding elective major surgery with identified patient or procedure risk factors”

· “Decision regarding emergency major surgery”

If one of these criteria is met, then the provider reaches high risk as one of the elements of MDM. To bill the service as high risk, one of the two other elements (number and Complexity of problems addressed at the encounter or amount and/or complexity of data to be reviewed and analyzed) must also be at high.

This level of E/M service is associated with a presenting problem where the patient requires hospitalization for management of the presenting problem/condition and meets the MDM elements criteria not for surgery itself.