Practice Management Alert

Hint: Know your payer's policies on billing complication treatment.

To ensure payment for E/M services your physician performs within the global period of a surgical procedure, you must know the ins and outs of modifier 24 (Unrelated evaluation and management service by the same physician during a postoperative period).

Last month, we busted the first two myths: Modifier 24 applies to any service done in the post-op period and scheduled office visits rule out modifier 24. Now tackle three more modifier 24 myths to ensure you're submitting clean, successful claims.

Myth #3: You Can Never Use Modifier 24 For Compliation-Related Services

When you report postoperative services to payers that follow CPT guidelines, you'll need to append modifier 24 to the E/M code to indicate that the service took place during the surgery's global period.

Example: If a patient has abdominal surgery and returns to your office with a postoperative wound infection along the suture line, you may be able to collect from private payers for an established patient visit and for the physician's treatment of the infection.

If the physician treats the infection in his office, you may be able to file a claim using modifier 24 to those payers following CPT guidelines.

Pointer: "Complications of surgery can be separate and billable in some cases, unless the payer is following Medicare rules," says Joseph Lamm, office manager with Stark County Surgeons, Inc. in Massillon, Ohio. "Medicare does not allow post-operative complications (hematoma, seroma, infection, etc) to be reimbursed unless there is a need to return to the operating room. At that point, a different modifier comes into play."

CMS and CPT agree: If the physician must return to the OR to treat a postop complication, both Medicare and private payers will pay at a reduced rate when you append the appropriate modifier to the surgical CPT code describing the surgeon's treatment of the postsurgical complication. If the surgeon returns to the operating room to surgically correct a post-operative complication during the global period of a previous surgery, the correct modifier is 78 (Unplanned return to the operating/procedure room by the same physician following initial procedure for a related procedure during the postoperative period).

Bottom line: Determining whether complications of the surgery/procedure count as unrelated, and therefore mean you'll use 24, means "you must know what the guidelines are for the insurance company being billed," says Charlotte T. Tweed, RHIA, CPC, coding auditor and inpatient/surgery coder in the department of medical education/coding at Florida Hospital in Orlando. "Medicare considers all complications part of global unless the patient is taken back to the OR. Most commercial insurances however will allow complications to be billed during global with the modifier 24."

Myth #4: There Must Be a New Diagnosis If You Use Modifier 24

While a different ICD-9 diagnostic code might indicate that the E/M service performed in a global period was unrelated to the surgery, you do not have to have different diagnoses to append modifier 24 and to receive payment for those services.

"It is not necessary that the two services have a different diagnosis but it should be clear that the service is performed to discuss results, prognosis and treatment options and that any work done related to the surgery (change bandages, check wound, etc.) is not used to support the level of service billed," says Marcella Bucknam, CPC, CCS-P, CPC-H, CCS, CPC-P, COBGC, CCC, manager of compliance education for the University of Washington Physicians Compliance Program in Seattle.

Caveat: "It is not mandatory to have a different diagnosis," Tweed agrees. "However, that said, for some insurance companies it is easier to get them to pay for the E/M completed during post op if the diagnosis is different."

Pitfall: "Do not code the E/M if the documentation is short!" Tweed warns. "This would be considered fraud and certainly not an area where any coder [or biller] should go. The proper use of modifier 24 can legally increase revenue and should be applied if applicable."

Myth #5: You Should Never Use Modifiers 24 and 25 Together

You may find yourself in situations where you need to combine the forces of modifiers 24 and 25 (Significant, separately identifiable evaluation and management service by the same physician on the same day of the procedure or other service) to avoid a denial of a claim.

"You can use 24 and 25 on the same claim, if you are seeing a patient for a completely new issue within the post op period, a procedure was done that same day, and the E/M code is significant and separately identifiable from the procedure," Lamm confirms.

Example: A patient undergoes major surgery. During the postoperative period, the patient comes for an office visit that is absolutely unrelated to the first surgery. At the unrelated E/M visit, the physician also performs a minor surgical procedure (such as a biopsy or cystoscopic examination) unrelated to the initial surgical procedure. In this case, you will append both modifiers 24 and 25 to the E/M code -- modifier 24 to allow payment of the E/M service in the global period of the initial surgery and modifier 25 to allow payment of the E/M service along with another procedure performed on the same day.

Tip: Always use the postoperative modifier (24) first, before you use other modifiers. Most computers sequence their edits, putting the postoperative period edits as the primary edit.