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What is Medical Coding?

Medical coding is that the transformation of healthcare diagnosis, procedures, medical services, and equipment into universal medical alphanumeric codes.

The diagnoses and procedure codes are taken from medical history documentation, like a transcription of physician’s notes, laboratory and radiologic results, etc.

Medical coding professionals help make sure the codes are applied correctly during the medical billing process, which incorporates abstracting the knowledge from documentation, assigning the acceptable codes, and creating a claim to be paid by insurance carriers.

Medical coding happens whenever you see a healthcare provider. The healthcare provider reviews your complaint and medical record makes an expert assessment of what’s wrong and the way to treat you, and documents your visit.

That documentation isn’t only the patient’s ongoing record, it’s how the healthcare provider gets paid.

A clinical coder – also referred to as a clinical coding officer, diagnostic coder, medical coder,  Nostlogist, or medical records technician – may be a health information professional

whose main duties are to analyze clinical statements and assign standard codes employing an arrangementthe info produced is an integral part of health information management,

and are employed by local and national governments, private healthcare organizations, and international agencies for various purposes,

including medical and health services research, epidemiological studies, health resource allocation, case mix management, public health programming, medical billing, and public education.

For example, a clinical coder may use a group of published codes on medical diagnoses and procedures, like the International Classification of Diseases (ICD) or the Common writing for Healthcare Procedures (HCPCS),

for reporting to the insurance provider of the recipient of the care. the utilization of ordinary codes allows insurance providers to map equivalencies across different service providers who may use different terminologies or abbreviations in their written claims forms,

and be wont to justify reimbursement of fees and expenses. The codes may cover topics associated with diagnoses, procedures, pharmaceuticals, or topography.

The medical notes can also be divided into specialties for instance cardiology, gastroenterology, nephrology, neurology, pulmonology, or orthopedic care. World Health Day

A clinical coder, therefore, requires an honest knowledge of medical terminology, anatomy, and physiology, a basic knowledge of clinical procedures and diseases and injuries and other conditions,

medical illustrations, clinical documentation (such as medical or surgical reports and patient charts), legal and ethical aspects of health information, health data standards, classification conventions,

and computer- or paper-based data management, usually as obtained through formal education and/or on-the-job training.

medicacl coding

In practice

The basic task of a clinical coder is to classify medical and health care concepts employing a standardized classification. Inpatient, mortality events, outpatient episodes, GP visits, and population health studies can all be coded.

Clinical coding has three key phases: a) Abstraction; b) Assignment; and c) Review.


The abstraction phase involves reading the whole record of the health encounter and analyzing the knowledge to work out what condition(s) the patient had,

what caused it, and the way it had been treated. the knowledge comes from a spread of sources within the medical historylike clinical notes, laboratory and radiology results, and operation notes.


The assignment phase has two parts: finding the acceptable code(s) from the classification for the abstraction, and entering the code into the system getting used to gather the coded data.


Reviewing the code set produced from the assignment phase is extremely important. Clinical coders must ask themselves, “does this code set fairly represent what happened to the present patient during this health encounter at this facility?” Women’s Health

By doing this, clinical coders are checking that they need to cover everything that they need to, but not used extraneous codes.

For health encounters that are funded through a case-mix mechanism, the clinical coder also will review the diagnosis-related group (DRG) to make sure that it does fairly represent the health encounter.

Competency levels
Clinical coders may have different competency levels counting on the precise tasks and employment setting.[6]

Entry-level / trainee coder

An entry-level coder has completed (or nearly completed) an introductory educational program in using clinical classifications. counting on the country;

this program could also be within the sort of a certificate, or maybe a degree; which has got to be earned before the trainee is allowed to start out coding.

All trainee coders will have some sort of continuous, on-the-job training; often being overseen by a more senior coder.

Intermediate level coder

An intermediate level coder has acquired the talents necessary to code many cases independently. Coders at this level also are ready to code cases with incomplete information. 

they need an honest understanding of anatomy and physiology alongside disease processes. Intermediate level coders have their work audited periodically by a complicated coder. Public Health

What are the benefits and Benefits of Becoming a Medical Coder?

We could continue and on about the benefits and benefits of becoming a medical billing specialist, except for simplicity’s sake, we’ve done our greatest to condense it into one tidy list.

Once you get the hang of it, this is often a predictable job with great pay
Ever-increasing demand makes this a reliably secure career choice

The pay is consistent and steady You can earn your medical coding certificate online in as little as four months
You don’t need a degree to qualify for a medical coder certification
With high demand nationwide,

relocation may be a breeze. Advancement opportunities are plentiful
Experienced medical coders can apply for remote positions and work from home.

Medial Coding

How Much Does Medical Coding and Billing Pay?

At the instant, the demand for skilled and qualified medical coders is high, because the population continues to age at a rapid pace. thereupon high demand comes higher wages annually.

 the foremost recent reports from the Bureau of Labor Statistics (BLS) show that medical records/ information technicians (medical coders included) earn a median pay of $19.40 per hour or roughly $40,350 per annum.

If you get into the highest ranks of the profession, you’ll find yourself making quite $62,000 per annum.

And the future continues to seem bright for medical coding. the sector is predicted to grow at a way faster rate than average. Most medical coders add hospitals and clinics,

but some work-from-home opportunities also are available. employment in medical coding also offers an honest potential for advancement opportunities as you gain more experience.

It’s clear that knowledge in medical coding and billing can cause a prosperous career for several years to return.

How Hard is Medical Coding?

Medical coding is often a sophisticated routine, but once you’ve got the hang of it, you’ll find that it’s absolutely possible for you to master this profession.

Accuracy is important with this profession, which may be challenging. Medical coders and billers use thousands of codes from multiple code sets (ICD, CPT, HCPCS) that are updated frequently.

They convert complex medical information into these clearly defined sets of codes, which demands a knowledge of health topics like anatomy, physiology, and medical terminology, and more.

Proficiency in medical coding means being extremely accurate in the least times while having a keen eye for the tiniest details. many roles within the healthcare field, like health information technician, can find great value in possessing this skill.

Advanced level / senior coder

Advanced level and senior coders are authorized to code all cases including the foremost complex. Advanced coders will usually be credentialed and can have several years of experience. a complicated coder is additionally ready to train entry-level coders.


A nosologist understands how the classification is underpinned. Nosologists consult nationally and internationally to resolve issues within the classification and are viewed as experts who can’t only code,

but design and deliver education, assist within the development of the classification and therefore the rules for using it.

Nosologists are usually experts in additional than one classification, including morbidity, mortality, and case-mix. In some countries, the term “nosologist” is employed as a catch-all term for all levels. 

Classification types

Clinical coders may use many various classifications, which fall under two main groupings: statistical classifications and nomenclatures.

Statistical classification

A statistical classification, like ICD-10 or DSM-5, will compile similar clinical concepts, and group them into one category. this enables the number of categories to be limited in order that the classification doesn’t become too big, but still allows statistical analysis.

An example of this is often in ICD-10 at code I47.1. The code title (or rubric) is Supraventricular tachycardia. However, there are several other clinical concepts that also are classified here.

Amongst them are paroxysmal atrial tachycardia, paroxysmal junctional tachycardia, auricular tachycardia, and nodal tachycardia.


With a nomenclature, for instance, SNOMED CT, there’s a separate listing and code for each clinical concept. So, within the tachycardia example above, each type and clinical term for tachycardia would have its own code listed. This makes nomenclatures unwieldy for compiling health statistics.

Education and professional qualification

In some countries, clinical coders may seek voluntary certification or accreditation through assessments conducted by professional associations, health authorities, or, in some instances, universities.

the choices available to the coder will depend upon the country, and, occasionally, even between states within a rustic.

Why  we used code

Let’s start with an easy question about medical coding: Why can we code medical reports? Wouldn’t it’s enough to list the symptoms, diagnoses, and procedures, send them to an insurance firm, and wait to listen to which services are going to be reimbursed?

To answer that, we’ve to seem at the huge amount of knowledge that each patient visit entails.

If you enter the doctor with pharyngitis and present the doctor with symptoms sort of a fever, pharyngitis, and enlarged lymph nodes, these are going to be recorded, alongside the procedures the doctor performs and therefore the medicine the doctor prescribes.

In a straightforward case like this, the doctor will only officially report his diagnosis, but that also means the portion of that report which will be coded contains a diagnosis, a procedure, and a prescription.

Take a step back, and this is often suddenly tons of very specific information. And that’s only for a comparatively simple doctor’s visit. What happens when a patient comes into the doctor with a sophisticated injury or sickness,

like an ocular impairment associated with their Type-2 diabetes? As injuries, conditions, and illnesses get more complex, the quantity of knowledge that must be conveyed to insurance companies increases significantly.

According to the Centers for Disease Control (CDC), there have been over 1.4 billion patient visits within the past year. That’s a stat that has visits to physician offices, hospital outpatient facilities, and emergency rooms.

If there have been just five pieces of coded information per visit, which is an almost unrealistically low estimate, that’d be 6 billion individual pieces of data that must be transferred per annum

during a system loaded with data, medical coding allows for the efficient transfer of giant amounts of data.

Coding also allows for uniform documentation between medical facilities. The code for streptococcal pharyngitis is that the same in Arkansas because it is in Hawaii.

Having uniform data allows for efficient research and analysis, which government and health agencies use to trace health trends far more efficiently.

If the CDC, for instance, wants to research the prevalence of viral infectionthey will look for the number of recent pneumonia diagnoses by trying to find the ICD-10-CM code.

Finally, coding allows administrations to seem at the prevalence and effectiveness of treatment in their facility. this is often especially important to large medical facilities like hospitals.

Like government agencies tracking, say, the incidence of a particular disease, medical facilities can track the efficiency of their practice by analyzing

Now that we understand the importance of this practice, let’s take a glance at the three sorts of code that you’ll need to become conversant in as a medical coder.

THREE sorts of CODE YOU’LL need to KNOW
There are three sets of code you’ll use on a day to day as a medical coder.

The first of those is that the International Classification of Diseases, or ICD codes.

These are diagnostic codes that make a consistent vocabulary for describing the causes of injury, illness, and death.

This code set was established by the planet Health Organization (WHO) within the late 1940s. It’s been updated several times within the 60-plus years since its inception.

the amount following “ICD” represents which revision of the code is in use.

For example, the code that’s currently in use within us is ICD-10-CM. this suggests it’s the 10th revision of the ICD code. That “-CM” at the top stands for “clinical modification.” 

therefore the technical name for this code is that the International Classification of Diseases, Tenth Revision, Clinical Modification.

The clinical modification may be a set of revisions put in situ by the National Center for Health Statistics (NCHS), which may be a division of the middle for Medicare and Medicaid Studies (CMS).

Clinical Modification significantly increases the number of codes for diagnoses. This increased scope gives coders far more flexibility and specificity,

which is important for the profession. to offer you a thought of how important the clinical modification is, the ICD-10 code, has 14,000 codes. It a clinical modification, ICD-10-CM, which contains over 68,000.

ICD codes are wont to represent a doctor’s diagnosis and therefore the patient’s condition. within the billing process, these codes are wont to determine medical necessity. Medical Coder

Coders must confirm the procedure they’re billing for is sensible with the diagnosis given. To return to our streptococcal sore throat example,

if a coder listed a streptococcal sore throat diagnosis because of the medical justification for an x-ray, that claim would likely be rejected.

Let’s turn our attention now to the 2 sorts of procedure codes.


Current Procedure Terminology, or CPT, codes, are wont to document the bulk of the medical procedures performed during a physician’s office.

This code set is published and maintained by the American Medical Association (AMA). These codes are copyrighted by the AMA and are updated annually.

CPT codes are five-digit numeric codes that are divided into three categories. the primary category is employed most frequently, and it’s divided into six ranges.

These ranges correspond to 6 major medical fields: Evaluation and Management, Anesthesia, Surgery, Radiology, Pathology and Laboratory, and Medicine. More

The second category of CPT codes corresponds to performance measurement and, in some cases, laboratory or radiology test results. These five-digit, alphanumeric codes are typically added to the top of a Category I CPT code with a hyphen.

Category II codes are optional, and should not be utilized in the place of Category I codes.

These codes are useful for other physicians and health professionals, and therefore the AMA anticipates that Category II codes will reduce the executive burden on physicians’ offices by providing them with more,

and more accurate, information, specifically associated with the performance of health professionals and health facilities.

The third category of CPT codes corresponds to emerging medical technology.

As a coder, you’ll spend the overwhelming majority of some time with the primary two categories, though the primary will undoubtedly be more common.

CPT codes even have addendums that increase the specificity and accuracy of the code used. Since many medical procedures require a finer level of detail than the essential Category I CPT code offers,

the AMA has developed a group of CPT modifiers. These are two-digit numeric or alphanumeric codes that are added to the top of the Category I CPT code.

CPT modifiers provide important additional information to the procedure code. as an examplethere’s a CPT modifier that describes which side of the body a procedure is performed on, and there’s also a code for a discontinued procedure.

How is Medical Coding Done?

Medical coding is best performed by trained and authorized Medical Coders. the subsequent example outlines what a typical day within the lifetime of a Medical Coder may appear as if.

After settling into the office and grabbing a cup of coffee, a Medical Coder usually begins the workday by reviewing the previous day’s batch of patient notes for evaluation and coding. the sort of records and notes depends on the clinical setting (outpatient or facility) and should require a particular degree of specialization (Healthcare systems may have individuals

who specialize in medical specialties while coders who add smaller, or more general offices, may have a broad range of patients and medical conditions.).

Selecting the highest patient note or billing sheet on the stack, the coder begins reviewing the documentation to know the patient’s diagnoses assigned and procedures performed during their visit.

Coders also abstract other key information from the documentation, including physician names, dates of procedures, and other information.

Coders believe ICD-10 and CPT® codebooks to start translating the physician’s notes into useful medical codes. An example of basic procedure documentation and subsequently assigned codes are often seen below.

Many cases are simple to code. Individual Medical Coders develop an in-depth understanding of the procedures and commonality of their specific clinic or facility. Coders occasionally encounter a difficult note requiring in-depth research, taking longer to code correctly.

Even among the more commonly used codes are significant gray areas open for examination among coders. With very complex or unusual cases, coding guidelines could also be confusing to interpret.

Experienced coders will believe their network of peers and professionals to debate nuances in online forums, networking with specialists they need to meet at national conferences or consulting with co-workers to assist in understand the difficulty and determine the right codes.

Ongoing training and current coding-related periodicals like Healthcare Business Monthly also provide important opportunities to advance understanding and professionalism.

Successful Medical Coders know anatomy, physiology, medical procedures, and payer rules and policies.

To become a Medical Coder, you want to attend training via a coding-specific educational program or college. Afterward, finding employment within the field is simpler if you’ve got a knowledgeable credential, like AAPC’s.

There are several Medical Coding certifications available, counting on the world of the revenue cycle you would like to pursue. The baseline for many is that the Certified Professional Coder (CPC),

which certifies the coder’s ability to figure in outpatient settings. Facility coders should pursue the Certified Inpatient Coder (CIC) for inpatient coding and authorized Outpatient Coder (COC) for hospital patients receiving in-and-out services.

Here’s an infographic to assist you chose the proper hospital credential. There are several programs available both for online training on Medical Coding and physical Medical Coding training classes.

Today quite 200,000 medical professionals are members of AAPC. AAPC elevates the standards of Medical Coding by developing training, professional certification, opportunities to network with other related medical professionals, and providing a spread of job search and career-building opportunities.

Professional coders largely work independently. However, interaction with coding staff, medical billers, physicians, and the ancillary office is important.

Medical coders are usually placed on tight production schedules and expected to finish a determined number of notes every day or to stay their lag days at a specified timeframe.

Lag days are the number of days it takes for the notes to be documented to the particular claims submission date. The prime date is typically between two to 5 days.

Depending on the clinical setting, internal or external auditors periodically perform audits of the coding and documentation for accuracy and completeness.

The results of those coding audits are maintained by the compliance department or the department supervisor and are a big part of job evaluations.

How Much Does a Medical Coder Make during a Year?

AAPC member medical coders average $54,890 per annum. Without certification, they earn $42,015 per annum while those with one certification early 33% more, $55,923.

However, where you residewhat percentage credentials you’ve got, what role you play within the revenue process, 

and the way much education you’ve got outside of coding can influence your salary. you’ll determine on AAPC’s Salary Survey page.

Charting your career requires curiosity, continuing education, and imagination. Achieving the credential is that the beginning of a lifetime of the latest experiences and knowledge.

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