ED Coding and Reimbursement Alert

Clean Up Simple Laceration Claims and Get the Payment You Deserve

Simple laceration repairs may be relatively easy for your ED physicians, but they're far from simple to code. Here is in-depth advice on how to ensure your claims for simple laceration repairs (12001-12004, 12011 and 12013) receive proper reimbursement from payers.

The contaminating problem for these codes may not be the laceration code at all. E/M codes and 99025 (Initial [new patient] visit when starred [*] surgical procedure constitutes major service at that visit) are commonly the reasons why some payers reject these claims, even though 12001-12004, 12011 and 12013 are starred procedures. Starred procedures cover only the procedure, so you can report another code for any other services rendered if documentation supports it, according to CPT guidelines. (See below for a discussion of 99025.) So you can report an E/M code to represent the extra work the physician does when evaluating the patient in addition to that involved in the laceration repair.

But that doesn't mean you should report the E/M code with simple laceration repair, more conservative coding experts argue. "Just because one can charge for something doesn't mean he has to," says Robert La Fleur, MD, president of Medical Management Specialties, treasurer of Emergency Care Specialists. Make an educated coding decision about whether to report both services: Read below.

Request and Follow Practice Policy for E/M Codes

Should you report an E/M code with simple laceration repair codes and, if so, when? "This is not a question with a single answer," La Fleur admits. The correct answer depends on the clinical scenario, the amount of documentation, the carrier involved, and the physician group's philosophy. In fact, the physician group's philosophy, if formalized as policy, provides the best answer to the question.

Consult and follow your practice's policy on starred procedures and simple laceration repairs, if available, when deciding whether to add an E/M code with modifier -25 (Significant, separately identifiable evaluation and management service by the same physician on the same day of the procedure or other service) to simple laceration repair claims, says Joan Gilhooly, CHCC, CPC, president of Medical Business Resources in Evanston, Ill. If your practice doesn't have a policy, request that it create one and put it in writing, she states. The policy should cover whether you can bill for the E/M or should consider it included.

Your practice policy should be consistent, Gilhooly says. When your physician assesses a patient who presents only with a simple laceration repair and comes up with all negative findings, you should either always report or never report the E/M service.

If You Lack a Policy,Weigh Medical Justification

If your practice doesn't yet have a policy concerning simple laceration codes, you will have to make the decision yourself. Consider these cautionary tips when deciding whether you have documented justification for appending E/M codes with laceration repair.

  • To be absolutely safe, skip the E/M code if it's routine. If your practice typically encourages conservative coding policies, you may want to skip reporting routine E/M codes with simple laceration repair. "There are cases in which the laceration is so minor and the history so straightforward that an additional E/M charge, though justifiable, is not warranted," La Fleur says, admitting it's a matter of wide-ranging opinion.

    An experienced ED physician explained it this way to Gregg Glinka, RN, vice president of CPR Charges at M. Leco and Associates, a healthcare consulting business in Pittsburgh. If a patient comes to the ED for a simple laceration repair (12001) and that is the only reason for seeking medical attention, an E/M may be "inappropriate" to report because "there is no separately identifiable reason to charge an E/M plus the procedure code." If, however, the patient had a syncopal episode and a simple laceration, "that scenario would indicate a separately identifiable reason for the E/M (syncope)." In this case, modifier -25 is appropriate, but adding the modifier to an E/M for a minor procedure is "incorrect."

    Whether you code the E/M service in addition to the starred procedure is a matter of interpretation, Glinka argues, but he is conservative about reporting it routinely.

  • Report the E/M code if documentation supports assessment of other risk factors. If the patient presents for a simple laceration repair, the ED physicians sometime perform E/M services that deserve separate reimbursement. (This advice applies to commercial payers. For more on reporting to Medicare,see below .)

    Even if your E/M doesn't warrant a level-three assignment, you should report the E/M code when the physician checks to make sure there are no other risk factors complicating treatment, such as a transient ischemic attack (TIA) or some other sort of structural instability, Gilhooly argues.

    Many practices will always do a more global assessment of the patient. Although the patient has a simple finger laceration, the doctor takes an additional E/M history to investigate comorbidities that could affect wound healing or risk of infection. This assessment will frequently include a review of tetanus status and relevant past medical history. In addition, the physician may perform a further physical exam beyond the laceration, including an assessment of distal neurovascular status and checking for other injuries.

    In these cases, you may appropriately bill a low-level E/M in addition to the simple laceration, confirms Mike Granovsky, MD, CPC.

    Gilhooly adds another example that warrants using an E/M code: An elderly patient presents with a laceration as a result of cutting her finger when chopping meat for dinner. This patient has the potential of other risk factors, so the ED physician performs an E/M to find out, for example, what medications the patient is on, such as a blood thinner, which could affect how the physician treats the wound. If the patient is diabetic, there's an added concern for bacterial infection, and the physician discovers all of this in an E/M assessment. Here you would assign the E/M code in addition to the simple laceration repair.

    Medicare Has Its Own Rules

    For Medicare patients, you should generally not code an E/M when the physician is just examining and repairing a laceration. Medicare doesn't recognize the starred (*) procedure concept. Instead, Medicare groups procedures according to the global surgical package, which is identified as minor (post-op period 0-10 days) or major (0-90 days). For Medicare minor procedures, you should have a separately identifiable E/M service to bill it in addition to the simple laceration repair. Medicare's definition of global surgical packages makes this guideline clear, Gilhooly adds. (You can find that definition at http://cms.hhs.gov/manuals/14_car/3b4820.asp.)

    But there are exceptions. If the laceration is of the scalp, for example, which was the result of a syncopal episode and a fall, you could get paid for the necessary workup for the cause of the syncope, she states. The justification is that your physician needed to evaluate the patient for syncope.

    Here's another Medicare hint. Use the same diagnoses code for the procedure and the E/M services when the single diagnosis code best explains the E/M, Gilhooly says. If you're hunting down second diagnoses codes for the E/M code, you may want to reconsider. A common "urban myth" for Medicare coding is that you need to have a second diagnosis code to justify reporting an E/M separately, Gilhooly states. The second diagnosis code may make the E/M "clear," she says, but in 1993, CMS, then the Health Care Financing Administration, sent a letter to carriers debunking the myth regarding second diagnosis requirements. The letter supports that Medicare does not require a separate diagnosis for the E/M code reported with a simple laceration repair and that Medicare is following the CPT rules for significant and separate E/M codes, which does not imply that you need two diagnoses codes, Gilhooly insists.

    You can also use this rule of thumb for Blue Cross Blue Shield, which recently changed its policy on requiring a second diagnosis, La Fleur says.

    As a final piece of advice for all payers, do not use 99025 to represent the evaluation of the patient unless specifically requested by the carrier, La Fleur says. Code 99025 is usually not the preferred code for any session, he says. Use an appropriate E/M code with a modifier.