Outpatient CDI Impacts New Payment Models

A Pittsburgh-based MD weighs in on an emerging area of focus in the healthcare industry.

EDITOR’S NOTE: The following are remarks made by the author during a recent broadcast of Talk Ten Tuesdays.

Today I would like to focus on outpatient clinical documentation improvement (CDI), often referred to as the lowly stepchild of inpatient CDI efforts. 

Personally, I feel it (outpatient CDI) can take over the spotlight from inpatient CDI, as it encompasses both the inpatient and outpatient world.  Outpatient CDI programs are directed primarily by primary care providers, which are increasingly getting involved in shared savings agreements, Advanced Payment Programs (APPs), and the Merit-Based Incentive Payment System (MIPS). However, many specialists are asking to be involved as well.  

One of the biggest differences between inpatient and outpatient CDI is that in the former arena, providers actually care about what you are teaching them. Providers who are engaged in risk-bearing contracts know that it is up to them to document and code the diagnoses that are relevant to the risk model. What a provider documents and codes will determine how successful they are in these risk-bearing contracts. But how can a provider remember all the things they need to document and code? 

At the University of Pittsburgh Medical Center (UPMC), we have risk-bearing contracts for Medicare Advantage, Medicaid, and the Patient Protection and Affordable Care Act (PPACA) plans, in addition to MIPS. It is impossible for any provider to know which diagnoses are relevant for each model, or to know if the diagnosis has been captured for the calendar year.  

In addition, approximately 80 percent of our outpatient visits are coded by the provider, not a coder. As we all know, providers, especially physicians, are not taught coding and documentation rules in their training. We are trying to remedy that at UPMC, but it would be impossible to rely on providers to remember the relevant diagnoses for each risk-based model, and to ensure that they get on a claim.  

One way to address this is to give the provider a list of diagnoses that have been coded in the past for their patient. This is helpful, but many providers find it annoying to have to deal with paper or electronic alerts for diagnoses that may or may not be relevant for the current visit. 

Most providers get 15-20 minutes to spend with a patient, and we have heard loud and clear that they want an easy-to-use tool to help them document and code their visits appropriately. In response to this, we have created a tool to help our providers. The tool will be embedded in our outpatient electronic medical record (EMR), and when a provider opens the encounter, it will reveal the relevant diagnoses for their patient, show them where the diagnoses came from, and make it easy to document the Monitor, Evaluate, Assess, and/or Treat (MEAT) and put the diagnosis on the claim. We will be going live with this system in the next eight weeks. 

Even with such a tool, it is always important to educate your providers about the risk models. For our doctors, the Centers for Medicare & Medicaid Services-Hierarchical Condition Category (CMS-HCC) model is the most common risk model used. 

I would like to end with an outpatient CDI tip for your providers: CKD 3 is once again an HCC! It has a very small weight, but considering how common CKD 3 is in our population, this is a gift to many providers. 

Facebook
Twitter
LinkedIn

Adele L. Towers, MD, MPH, FACP

Dr. Towers is the senior clinical advisor for UPMC Enterprises. She is directly involved in the development of healthcare-related technology, with emphasis on use of Natural Language Processing (NLP) for risk adjustment coding and use of clinical analytics to optimize clinical performance. Prior to this role, she has served as the medical director for health information management (HIM) at UPMC, with responsibility for clinical documentation improvement as well as inpatient coding denials and appeals.

Related Stories

The Legislative Plight of 340B

The Legislative Plight of 340B

In December 2024, the U.S. Supreme Court declined to hear an appeal challenging an Arkansas law requiring pharmaceutical companies to provide drug discounts through third-party

Read More

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

The Cost of Ignoring Risk Adjustment: How HCCs Impact Revenue & Compliance

The Cost of Ignoring Risk Adjustment: How HCCs Impact Revenue & Compliance

Stop revenue leakage and boost hospital performance by mastering risk adjustment and HCCs. This essential webcast with expert Cheryl Ericson, RN, MS, CCDS, CDIP, will reveal how inaccurate patient acuity documentation leads to lost reimbursements through penalties from poor quality scores. Learn the critical differences between HCCs and traditional CCs/MCCs, adapt your CDI workflows, and ensure accurate payments in Medicare Advantage and value-based care models. Perfect for HIM leaders, coders, and CDI professionals.  Don’t miss this chance to protect your hospital’s revenue and reputation!

May 29, 2025
I050825

Mastering ICD-10-CM Coding for Diabetes and it’s Complications: Avoiding Denials & Ensuring Compliance

Struggling with ICD-10-CM coding for diabetes and complications? This expert-led webcast clarifies complex combination codes, documentation gaps, and sequencing rules to reduce denials and ensure compliance. Dr. Angela Comfort will provide actionable strategies to accurately link diabetes to complications, improve provider documentation, and optimize reimbursement—helping coders, CDI specialists, and HIM leaders minimize audit risks and strengthen revenue integrity. Don’t miss this chance to master diabetes coding with real-world case studies, key takeaways, and live Q&A!

May 8, 2025
2025 Coding Clinic Webcast Series

2025 ICD-10-CM/PCS Coding Clinic Update Webcast Series

Uncover critical guidance. HIM coding expert, Kay Piper, RHIA, CDIP, CCS, provides an interactive review on important information in each of the AHA’s 2025 ICD-10-CM/PCS Quarterly Coding Clinics in easy-to-access on-demand webcasts, available shortly after each official publication.

April 14, 2025

Trending News

Featured Webcasts

Medicare Advantage 2026: Navigating New Rules, Denial Protections & SDoH Shifts

Medicare Advantage 2026: Navigating New Rules, Denial Protections & SDoH Shifts

Stay ahead of Medicare Advantage’s 2025-2026 regulatory changes in this critical webcast featuring expert Tiffany Ferguson, LMSW, CMAC, ACM. Learn how new CMS rules limit MA plan denials, protect hospitals from retroactive claim reopenings, and modify Two-Midnight Rule enforcement—plus key insights on omitted SDoH mandates and heightened readmission scrutiny. Discover actionable strategies to safeguard revenue, ensure compliance, and adapt to evolving health equity priorities before the June 2025 deadline. Essential for hospitals, revenue cycle teams, and compliance professionals navigating MA’s shifting landscape.

May 28, 2025
Navigating the 3-Day & 1-Day Payment Window: Compliance, Billing, and Revenue Protection

Navigating the 3-Day & 1-Day Payment Window: Compliance, Billing, and Revenue Protection

Struggling with CMS’s 3-Day Payment Window? Join compliance expert Michael G. Calahan, PA, MBA, CCO, to master billing restrictions for pre-admission and inter-facility services. Learn how to avoid audit risks, optimize revenue cycle workflows, and ensure compliance across departments. Critical for C-suite leaders, providers, coders, revenue cycle teams, and compliance teams—this webcast delivers actionable strategies to protect reimbursements and meet federal regulations.

May 15, 2025
Audit-Proof Your Wound Care Procedures: Expert Insights on Compliance and Risk Mitigation

Audit-Proof Your Wound Care Procedures: Expert Insights on Compliance and Risk Mitigation

Providers face increasing Medicare audits when using skin substitute grafts, leaving many unprepared for claim denials and financial liabilities. Join veteran healthcare attorney Andrew B. Wachler, Esq., in this essential webcast and master the Medicare audit process, learn best practices for compliant billing and documentation, and mitigate fraud and abuse risks. With actionable insights and a live Q&A session, you’ll gain the tools to defend your practice and ensure compliance in this rapidly evolving landscape.

April 17, 2025
Utilization Review Essentials: What Every Professional Needs to Know About Medicare

Utilization Review Essentials: What Every Professional Needs to Know About Medicare

Dr. Ronald Hirsch dives into the basics of Medicare for clinicians to be successful as utilization review professionals. He’ll break down what Medicare does and doesn’t pay for, what services it provides and how hospitals get paid for providing those services – including both inpatient and outpatient. Learn how claims are prepared and how much patients must pay for their care. By attending our webcast, you will gain a new understanding of these issues and be better equipped to talk to patients, to their medical staff, and to their administrative team.

March 20, 2025

Trending News

Celebrate Lab Week with MedLearn! Sign up to win one year of our Laboratory All Access Pass! Click here to learn more →

Prepare for the 2025 CMS IPPS Final Rule with ICD10monitor’s IPPSPalooza! Click HERE to learn more

Get 15% OFF on all educational webcasts at ICD10monitor with code JULYFOURTH24 until July 4, 2024—start learning today!

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24