Medical Coding Definition

Medical coding in the healthcare industry refers to translating medical diagnoses, procedures, services, and equipment into standardized codes. These codes are used to accurately document patient conditions and treatments, ensuring consistency and facilitating billing and reimbursement. There are several coding systems, with the most common being the International Classification of Diseases (ICD) for diagnoses and the Current Procedural Terminology (CPT) for procedures.

Healthcare providers use these codes to submit claims to insurance companies, which then determine the reimbursement amount based on the coded information. Proper coding is essential for accurate billing, compliance with regulations, and efficient healthcare administration.