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If you have just started a medical device company, you have probably come across the term “device CPT code” but don't really know how it can affect your business. If you’d like to learn more, read on for some relevant facts. What exactly is CPT? CPT means Current Procedural Terminology. It's a list of descriptive terms and their assigned codes and was first developed and published by the American Medical Association in 1966. What is its purpose? CPT was created to provide a uniform language that would be shared by healthcare providers and third parties. This language accurately describes diagnostic, medical, and surgical services given to patients. As a result, medical care providers all over the country have a reliable and effective means of communicating in order to provide the best possible care to their patients. How is it used? Currently, the CPT process has several uses. For one, it is utilized to inform both public and private health insurance providers about the medical procedures and services that their policyholders (i.e., the patients) have received. It is also used in processing insurance claims, developing medical care review guidelines, and in performing other administrative management tasks. A CPT code is even useful in conducting research studies as well as in improving medical education and study data tracking efficacy. What are the specific CPT codes? CPT codes are divided into three categories. The codes under Category I are composed of five digits (example: 00352) and are used to provide a detailed description about medical services and procedures. Category I is divided into six major sections, which are the Codes for Evaluation and Management, Codes for Anaesthesia, Codes for Surgery, Codes for Radiology, Codes for Pathology and Laboratory, and Codes for Medicine. Category II codes, meanwhile, are utilized in performance measurement, specifically in collecting data about the quality of care given to patients. Unlike Category I codes, Category II codes are composed of four numbers followed by a letter, such as 0001F. The use of Category II codes is optional. Category III codes, on the other hand, are used to track new and emerging technologies that are still being assessed for their effectiveness or for their widespread usage. Like the Category II codes, Category III codes are composed of four numerical characters followed by letter (like 0207T). Why is CPT important to your business? When a CPT code is assigned to your medical device, healthcare providers who buy and use your equipment can easily get reimbursement. Codes normally are associated with standard payment amounts and the conditions for which the insurer will accept for payment. As a result, they won't hesitate to invest in your products for the right patients and perhaps even recommend you to their peers, helping you obtain more clients and bigger sales. The CPT process can be difficult to understand at first glance. However, when you dig deeper, you'll understand the benefits that it can provide your business. There are specific steps and procedures that must be followed so that either your device can be accepted under an existing CPT code or a new one can be created on your behalf.
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