This alphanumeric designation refers to a specific service within the Current Procedural Terminology (CPT) coding system. It represents a level of evaluation and management service provided to a new patient. The service is typically performed in a physician’s office or other outpatient setting. It requires a medically appropriate history and/or examination, and straightforward medical decision making. An example includes a new patient presenting with a minor ailment, like a mild upper respiratory infection, where the physician conducts a basic examination, reviews the patient’s history, and prescribes a common treatment.
The significance of accurately applying this code lies in ensuring appropriate reimbursement for healthcare providers. Correct coding facilitates accurate billing and claims processing by insurance companies. Historically, the CPT system was developed to provide a standardized language for reporting medical procedures and services, improving communication and data collection within the healthcare industry. Using the code appropriately results in consistent data, allowing for accurate tracking of services rendered and facilitating quality improvement initiatives.