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FDMC™-Fellowship in Dermatology Coding
FDMC™ – Fellowship in Dermatology Coding
The objective of the FDMC™ – Fellowship in Dermatology Coding is to develop advanced expertise in Dermatology Medical Coding, procedural documentation analysis, and specialty reimbursement compliance.
By the end of this fellowship, participants will be able to:
Interpret and apply CPT® Integumentary System Guidelines accurately
Assign correct ICD-10-CM diagnosis codes for dermatological conditions
Differentiate benign vs malignant lesion coding appropriately
Code biopsies, excisions, repairs, grafts, and Mohs surgery confidently
Apply correct CPT® Modifiers (25, 59, 51, 58, 79) in dermatology scenarios
Understand and apply Global Surgical Package rules
Ensure compliance with NCCI Edits and bundling regulations
Validate documentation using medical necessity standards
Interpret pathology reports for accurate diagnosis linkage
Prevent overcoding, undercoding, and audit risks
Analyze dermatology operative reports for defensible coding decisions
Strengthen audit readiness and reimbursement accuracy
This fellowship is designed to elevate professionals from general coding roles into specialized Dermatology Coding Experts with strong compliance and procedural proficiency.
Medical coders must clearly understand terminology used in the CPT manual for integumentary procedures.
The Office of Inspector General OIG closely monitors dermatology services because of high audit risk, especially for lesion removals, biopsies, and destruction procedures.
Each
Each separate
Each additional
Single
Multiple
Any number
Audit risk: Incorrect counting of lesions can lead to overbilling or unbundling.
Simple
Complicated
Extensive
Audit risk: Upcoding severity without documentation is a common OIG finding.
Small
Medium
Large
Audit risk: Lesion size must be documented before destruction or excision, not after.
Superficial
Deep
Subcutaneous
Audit risk: Depth determines code selection. Coders must not assume depth.
Incision
Excision
Biopsy
Audit risk: Biopsy codes are frequently misused when the lesion is fully removed.
Skin graft from one person to another
Donor is usually a cadaver
Applied to the skin to deaden pain
Included in most minor procedures unless stated otherwise
Skin graft from the patient’s own body
Removal of tissue by needle, knife, punch, or brush
Used for diagnostic purposes
Do not report biopsy if the entire lesion is removed
Destruction of tissue using chemicals, electricity, heat, or freezing
Abrasion using chemicals
Also known as chemical peel
Destruction of tissue using extreme cold
Audit note: Document number of lesions and method clearly.
Removal of superficial skin lesions using a curette
Removal of foreign material or dead tissue from a wound
OIG focus: Depth and type of tissue removed must be documented.
Mechanical abrasion using wire brushes or sandpaper
Used for scars, tattoos, and acne
Skin grafting or transplantation
Tissue destruction using electric current
Removal of tissue by cutting
Includes margins when documented
Audit risk: Incorrect margin calculation is a frequent error.
Rapid microscopic examination of frozen tissue
Often bundled into surgical procedures
Skin from another species usually pig
Also known as xenograft
Surgical opening to allow drainage of pus or fluid
Audit focus: Simple versus complicated must be clearly supported.
Destruction of lesions using focused laser energy
Removal of fat using suction
Surgical removal of excess skin
Commonly called face lift
Transfer of skin to cover another site
Common in burn treatment and post excision repair
Never assume lesion size, depth, or malignancy
Documentation must support each CPT descriptor
Do not report biopsy when excision is performed on the same lesion
Count lesions accurately
Avoid automatic use of complicated or extensive codes
Always verify bundling rules and NCCI edits
Dermatology is a high audit specialty.
Correct coding depends on precise documentation, not assumptions.
CPT 10030
Image guided fluid collection drainage by catheter
Percutaneous approach
Used for soft tissue collections such as
– Abscess
– Hematoma
– Seroma
– Lymphocele
– Cyst
• Applies to soft tissue locations only, including
– Extremity
– Abdominal wall
– Neck
• Imaging guidance is included and not reported separately
• Code is reported once per collection drained, regardless of catheter size or duration
• CPT 10035
Placement of soft tissue localization devices such as clips or markers
First lesion
• CPT +10036
Placement of soft tissue localization devices such as clips or markers
Each additional lesion
• Code +10036 is an add on code
• Add on codes must never be reported alone
• Add on codes are modifier 51 exempt
• CPT codes 10035 and +10036 are for soft tissue only
• Do NOT use these codes for breast procedures
• For breast marker placement, use existing breast specific codes
– 19081 to 19086 for biopsy guidance
– 19281 to 19288 for breast localization
• If a more specific anatomic site than soft tissue is applicable
– Always use the site specific CPT codes instead of 10035 or +10036
• Codes 10035 and +10036 are reported once per target lesion
• This is true regardless of the number of markers placed for that lesion
• Multiple markers placed to define one target
– Report only one unit of 10035
• Multiple separate lesions
– Report 10035 for the first lesion
– Report +10036 for each additional lesion
• Do not report additional units based on
– Number of markers
– Number of clips
– Number of passes
• Always verify anatomic site before selecting marker placement codes
• Avoid using soft tissue codes when site specific codes exist
• Over reporting units for multiple markers on one lesion is a common audit risk
• Documentation must clearly identify
– Target lesion
– Anatomic location
– Imaging guidance used
Paring or Cutting (11055-11057)
Example #1: Paring of 1 lesion.
|
Procedure Code |
Units |
|
11055 |
1 |
Example #2: Paring of 2 lesions with established patient level 4 E/M service for another condition on the same day.
|
Procedure Code |
Modifiers |
Units |
|
99214 |
25 |
1 |
|
11056 |
1 |
Example #3: Two lesions are pared from the right foot and three lesions are pared from the left foot.
|
Procedure Code |
Units |
|
11057 |
1 |
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