All terms
ReimbursementHospital Buyer & Reimbursement
ICD-10-CM / ICD-10-PCS
Diagnosis (CM) and inpatient procedure (PCS) coding systems used in U.S. claims.
Reviewed by Christian Espinosa, Founder, Blue Goat CyberLast reviewed May 5, 2026
Definition
ICD-10-CM codes are diagnosis codes used across all care settings; ICD-10-PCS codes describe inpatient procedures and drive MS-DRG assignment for hospital reimbursement. What the regulation says
ICD-10-CM codes are used for reporting diagnoses across all healthcare settings, as mandated by the Health Insurance Portability and Accountability Act (HIPAA) for electronic transactions. ICD-10-PCS codes are specifically for reporting inpatient procedures and are critical for reimbursement under systems like Medicare Severity-Diagnostic Related Groups (MS-DRGs) in the United States, as managed by the Centers for Medicare and Medicaid Services (CMS). The correct application of these codes directly impacts billing, data collection, and public health reporting.What this means in practice
Securing a unique ICD-10-PCS code can materially change inpatient payment for a new procedure or device. CMS holds public ICD-10 Coordination & Maintenance meetings twice yearly.Examples
- A MedTech manufacturer develops a novel surgical implant; they must ensure that a corresponding ICD-10-PCS code exists or is proposed to ensure hospitals can bill for its use effectively.
- A regulatory affairs specialist reviews clinical study data to identify diagnoses that will be reported using ICD-10-CM codes, verifying alignment with the intended use and claims for the device.
- During post-market surveillance, ICD-10-CM codes associated with device complications or adverse events are analyzed to identify potential trends or issues.
Common pitfalls
- •Assuming that a MedTech product automatically receives a unique ICD-10-PCS code without active engagement in the CMS coordination and maintenance process is a common mistake.
- •Failing to understand the specific criteria and timelines for proposing new ICD-10 codes can lead to delayed market access or suboptimal reimbursement for new technologies.
- •Incorrectly coding diagnoses (ICD-10-CM) or procedures (ICD-10-PCS) can result in claim denials, audits, and potential penalties.
- •Overlooking the distinction between ICD-10-CM for diagnoses and ICD-10-PCS for inpatient procedures can lead to mischaracterization of a device’s impact or use.
Frequently asked questions
Regulatory professionals monitor the development of new ICD-10 codes, particularly ICD-10-PCS, to ensure that their MedTech products can be appropriately coded for reimbursement and data tracking. They may engage in the CMS coordination and maintenance process to advocate for new codes relevant to their devices.
Cross-references
Related terms
Shared paths + categoryReimbursement
HCPCS Codes(HCPCS)
CMS-maintained codes for products, supplies, and services not in CPT.
Reimbursement & Market Access · adjacent
Reimbursement
Current Procedural Terminology Codes(CPT)
AMA-maintained codes used to report medical procedures and services for billing.
Reimbursement & Market Access
Reimbursement
National and Local Coverage Determinations(NCD / LCD)
Medicare coverage policies issued nationally (NCD) or by individual MAC contractors (LCD).
Reimbursement & Market Access · adjacent
Reimbursement
Budget Impact Model(BIM)
Financial model that estimates the total cost consequences of adopting a new technology to a payer's budget over a defined horizon.
Reimbursement & Market Access
Reimbursement
CPT Codes(CPT)
AMA-maintained codes that describe medical procedures and services.
Reimbursement & Market Access
Reimbursement
Health Technology Assessment(HTA)
Systematic evaluation of clinical and economic value of a health technology.
Reimbursement & Market Access
Latest in MedTech
Primary references
3 sourcesLink health: 3 verified· last checked 2026-06-20
CMS·1AMA·1AdvaMed·1
- 1CMS ICD-10VerifiedCMScms.gov
- 2AMA CPT ResourcesVerifiedAMAama-assn.org
- 3AdvaMed - Payment & CoverageVerifiedAdvaMedadvamed.org
Inline markers like [1] jump to the matching reference above.