Medical coding transforms healthcare procedures, services, and equipment into universal alphanumeric codes, facilitating standardization for understanding and tracking. It is crucial for collecting medical statistics, reimbursement, hospital payments, quality review, and benchmarking. The Healthcare Common Procedure Coding System (HCPCS), created by CMS, includes standardized codes for various medical services and consists of two levels, aligning with CPT and subdivided into 17 specific sections.

2. Medical coding is defined as the transformation of
healthcare procedures, medical services and equipment
into universal medical alpha numeric codes.
It standardized the language and presentation of all these
elements so they can be easily understood, tracked and
modified.
It is performed all over the world with most countries
using ICD.
Medical Coding

3. IMPORTANCE
1.Collection of general medical statistical data.
2.Medical reimbursement.
3.Hospital payment.
4.Quality review.
5.Benchmarking measurement.

8. HCPCS (HCPCS - Healthcare Common
Procedure Coding System)
The Healthcare Common Procedure Coding System
(HCPCS) is produced by the Centers for Medicare and Medicaid
Services (CMS). HCPCS is a collection of standardized codes that
represent medical procedures, supplies, products and services.
It consist of 2 levels:
1. Identical to CPT
2. Set of alphanumeric codes that is divided into 17 section
each based on area of specificity like medical and laboratory (or)
rehabilitative services.