CIC study materials
CIC study resources

CIC (National Alliance) key terms

CIC · Get comfortable with the vocabulary.

Uniform Hospital Discharge Data Set (UHDDS)

A national minimum data set collected on inpatient discharges that standardizes data elements, including the definition of principal diagnosis that coders apply when selecting the first-listed diagnosis on a claim.

Related: Principal diagnosis, ICD-10-CM Official Guidelines for Coding and Reporting
Principal diagnosis

The condition established after study to be chiefly responsible for occasioning the admission of the patient to the hospital for care; it is sequenced first on the inpatient claim.

Related: Uniform Hospital Discharge Data Set (UHDDS), Secondary diagnosis, MS-DRG
Secondary diagnosis

Any condition other than the principal diagnosis that is documented and affects patient care during the stay, including conditions that raise severity or resource use.

Related: Principal diagnosis, CC/MCC
ICD-10-CM Official Guidelines for Coding and Reporting

The federal rules issued by the cooperating parties that govern how diagnoses are selected and sequenced, including chapter-specific instructions coders must follow for inpatient records.

Related: Excludes1, Principal diagnosis
Excludes1

A note stating two codes cannot be reported together because the conditions are mutually exclusive; the coder selects the single code that best represents the documented condition.

Related: Excludes2, Combination code
Excludes2

A note meaning the excluded condition is not part of the condition represented by the code; both may be coded separately when each is documented and clinically relevant.

Related: Excludes1
Combination code

A single code that classifies two diagnoses, or a diagnosis with its associated manifestation or complication, used instead of reporting each element with separate codes.

Related: Excludes1, Code first / Use additional code
Code first / Use additional code

Instructional notes that establish sequencing when one condition is due to another, requiring the underlying cause to be coded first and the manifestation or added detail coded second.

Related: Combination code, Principal diagnosis
Unspecified code

A code used when documentation does not support a more specific diagnosis; frequent use reduces data quality and may lower severity, so coders query when clarification is possible.

Related: Physician query, ICD-10-CM Official Guidelines for Coding and Reporting
Present on admission (POA) indicator

A reporting flag showing whether a condition was present when the inpatient admission occurred, reported with values such as Y, N, U, and W for quality and payment purposes.

Related: Hospital-acquired condition, Patient safety indicator
Hospital-acquired condition

A condition that develops during hospitalization and meets criteria for reduced or denied payment because it was not present on admission and was reasonably preventable.

Related: Present on admission (POA) indicator, Patient safety indicator
Two-midnight rule

A Medicare payment policy under which inpatient admission is generally appropriate when the physician expects the stay to span at least two midnights, supporting Part A payment.

Related: Medical necessity, Principal diagnosis
Medical necessity

The determination that services provided were reasonable and necessary for diagnosing or treating illness or injury, a fundamental requirement for Medicare payment of a claim.

Related: Two-midnight rule, False Claims Act
Recovery Audit Contractor

A Medicare-contracted entity that reviews claims for improper payments and recovers overpayments or returns underpayments, concentrating on high-risk coding and billing issues.

Related: False Claims Act, Audit trail
False Claims Act

A federal statute imposing liability on entities that knowingly submit false or fraudulent claims, including claims unsupported by documentation; violations carry civil penalties and treble damages.

Related: Recovery Audit Contractor, Compliance program
Compliance program

A hospital's structured set of written policies, training, monitoring, auditing, and enforcement activities designed to prevent and detect violations of coding and billing requirements.

Related: False Claims Act, Audit trail
MS-DRG

Medicare Severity Diagnosis Related Groups, the inpatient prospective payment classification that assigns each stay to a group based on principal diagnosis, procedures, and secondary diagnoses reflecting severity.

Related: CC/MCC, DRG grouper, Relative weight
CC/MCC

Complication or comorbidity and major complication or comorbidity; secondary diagnoses designated by the grouper as raising severity, which can move a case into a higher-paying DRG.

Related: MS-DRG, Severity of illness
DRG grouper

Software that applies MS-DRG logic to coded diagnoses and procedures, producing the final DRG assignment and its relative weight for payment calculation.

Related: MS-DRG, CC/MCC
Relative weight

A value assigned to each MS-DRG reflecting its average resource cost compared with the national average; it is multiplied by the standardized payment amount to calculate base payment.

Related: MS-DRG, Case mix index
Case mix index

The average relative weight of all discharges in a hospital or unit during a period, used to measure patient acuity and resource intensity.

Related: Relative weight, Severity of illness
Outlier payment

Additional Medicare payment made when a case's estimated costs exceed a fixed threshold above the DRG payment, reflecting an unusually costly or lengthy stay.

Related: Geometric mean length of stay, MS-DRG
Transfer DRG payment adjustment

A reduced DRG payment applied when a patient is discharged to a post-acute care provider before the geometric mean length of stay, because the hospital did not bear full expected costs.

Related: Geometric mean length of stay, MS-DRG
Geometric mean length of stay

The average length of stay calculated using logarithms, published for each MS-DRG and used to set thresholds for transfer and outlier payment adjustments.

Related: Outlier payment, Transfer DRG payment adjustment
ICD-10-PCS

The inpatient procedure classification system using seven-character alphanumeric codes built from tables that define section, body system, root operation, body part, approach, device, and qualifier.

Related: Root operation, PCS table
Root operation

The third character of an ICD-10-PCS code that defines the objective of the procedure, such as excision, resection, drainage, or bypass.

Related: Body part character, ICD-10-PCS
Body part character

The fourth character of an ICD-10-PCS code specifying the anatomical site on which the root operation is performed, selected from the values listed in the applicable table.

Related: Root operation, Approach character
Approach character

The fifth character of an ICD-10-PCS code identifying how the operative site was reached, such as open, percutaneous, percutaneous endoscopic, or via natural or artificial opening.

Related: Root operation, Device character
Device character

The sixth character of an ICD-10-PCS code indicating the device left in place at the end of the procedure, with the value Z meaning no device remains.

Related: Approach character, Qualifier character
Qualifier character

The seventh character of an ICD-10-PCS code providing extra attribute information about the procedure, such as diagnostic versus therapeutic intent or a specific technique used.

Related: Device character, Root operation
Resection

An ICD-10-PCS root operation meaning cutting out or off all of a body part without replacement, distinguished from excision, which removes only a portion of the body part.

Related: Root operation, Bypass
Bypass

A root operation creating a new route for contents to flow around a blocked or diseased area, coded with a qualifier identifying the destination of the flow.

Related: Root operation, Qualifier character
PCS table

The grid in the ICD-10-PCS codebook listing valid character combinations for a body system and root operation; coders build a code by choosing one value in each applicable column.

Related: ICD-10-PCS, Root operation
Physician query

A written or electronic communication asking the provider to clarify, specify, or add documentation needed for accurate code assignment, written in a non-leading manner.

Related: Clinical documentation integrity, Unspecified code
Clinical documentation integrity

A program of concurrent record review, querying, and provider education intended to ensure the medical record clearly and completely reflects the patient's severity of illness and care provided.

Related: Physician query, Severity of illness
Severity of illness

The extent of physiologic decompensation or organ system loss of function, a concept used by DRG and risk-adjustment systems to explain resource use and outcomes.

Related: CC/MCC, Clinical documentation integrity
Audit trail

Documentation of coding and query activity, including who changed what and when, that supports compliance review and defends the final coded record.

Related: Clinical documentation integrity, Recovery Audit Contractor
Patient safety indicator

Agency for Healthcare Research and Quality measures built from coded data that flag potentially preventable complications and adverse events for quality reporting and comparison.

Related: Hospital-acquired condition, Present on admission (POA) indicator