Current Procedural Terminology (CPT) codes are a standardized set of numerical codes used to report medical, surgical, and diagnostic procedures and services to payers for reimbursement. These codes are essential for accurate billing and claims processing within the healthcare system. An example includes using a specific code to represent an evaluation and management (E/M) service provided for a patient presenting with an acute illness.
The accurate application of these codes is crucial for healthcare providers to receive appropriate compensation for services rendered. The use of standardized coding also contributes to data collection and analysis, which can inform healthcare policy and improve patient outcomes. Furthermore, consistent coding practices help to prevent fraud and abuse within the billing system, ensuring that resources are allocated appropriately.