Understanding your Medical Decision-Making

For E/M services, the level of care selected for any given encounter may be based on the time spent OR on the MDM required for the visit. It is up to the physician to choose to code based on time or based on the MDM. If you are coding based on time, you do NOT need also to satisfy the MDM requirements for any given level of care because the level of care will be driven by time spent.
On the other hand, most physicians find it more efficient to select the level of care based on the MDM required for the visit, instead of based on time. If you do code based on the MDM, then you do NOT need to worry about how much time you spent because the level of care will be driven solely by the MDM required for the encounter. For this reason, it is important to understand the rules for calculating your MDM
The level of MDM is determined based on the problems being addressed, the data reviewed and the risk to the patient.
It is important to understand that only two out of three dimensions of MDM are needed to qualify for any given level of complexity, that is you don’t need the problems, the data and the risk—you only need two out of three.
There are four levels of MDM ranging from straightforward to high complexity based on table below.
| MDM | Number and complexity of problems addressed | Amount and/or complexity of data reviewed | Risk of complications and/or morbidity |
| SF |
|
|
|
| Low |
|
(Must meet the requirements for 1 of 2 of the categories)
Category 1: Tests and documents (Requires any combination of 2 from the following)
Category 2: Assessment requiring an independent historian |
|
| Mod |
|
(Must meet the requirements for 1 of 3 of the categories) Category 1: Tests and documents, historian Any combination of 3 of the following:
Category 2: Interpretation of tests
Category 3: Discuss management/tests
|
|
| High |
|
Same as moderate, but requirements for 2 out of the 3 categories must be met |
|
| Requires 2 out of 3 to qualify for any given level of MDM | |||
For example, if you are addressing two stable chronic illnesses and you also engage in prescription drug management, you would qualify for moderate complexity MDM based on the problems being addressed and moderate risk, independent of the amount and complexity of the data reviewed.

In our courses, we use clinical examples to illustrate how to interpret the MDM table in daily practice to ensure that the level of care selected for any encounter will be congruent with the intensity of the cognitive labor provided by the physician.
