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what is the difference between technical component and professional component

by Mr. Jake Spencer Published 3 years ago Updated 3 years ago

What is the difference between technical component and professional component? The explanation per CMS, in a nutshell, is this: The professional component of a charge covers the cost of the physician's professional services only. The technical component of a charge addresses the use of equipment, facilities, non-physician medical staff, supplies, etc.

The technical component of a charge addresses the use of equipment, facilities, non-physician medical staff, supplies, etc. Technical charges do not include the physician's professional fees, but include the use of all other services associated with the visit.

Full Answer

What is the difference between technical and professional components?

technical component is related to the costs of the equipment and supplies, like, the cost of the machine itself and the supplies related to doing the procedure, like, xray film. professional component (-26 modifier) is related to the cost of the professional reading and interpreting the study, the doctor reading the test.

What does technical component mean?

The technical component of a service includes the provision of all equipment, supplies, personnel, and costs related to the performance of the exam. To claim only the technical portion of a service, append modifier TC, technical component, to the appropriate CPT code.

What is the definition of technical component?

• Technical Component refers to certain procedures that are a combination of a physician component and a technical component. Using modifier TC identifies the technical component. • When a global service is performed, it should be coded without modifiers. Do not report a procedure code with both modifiers 26 and TC

What is a professional component?

• Professional Component refers to certain procedures that are a combination of a physician component and a technical component. Using modifier 26 identifies the physician’s component. • To bill for only the professional component portion of a test

What does professional component mean?

Professional component means the charges associated with a professional service provided to a patient by a hospital based physician. This component is billed separately from the inpatient charges.

What is meant by technical component?

Related Definitions Technical component means the part of a procedure or service that relates to the equipment set-up and techni- cian's time, or the part of a procedure and service payment that recognizes the equipment cost and technician time.

Which is an example of a professional component?

An example of a professional component only code is 93010, Electrocardiogram; interpretation and report. Modifiers 26 and TC cannot be used with these codes. The total RVUs for professional component only codes include values for physician work, practice expense, and malpractice expense.

What is the professional component of a CPT code?

The professional component is outlined as a physician's service, which may include technician supervision, interpretation of results, and a written report. To claim only the professional portion of a service, CPT® Appendix A (Modifiers) instructs you to append modifier 26 to the appropriate CPT® code.

What is the professional component modifier?

Modifier 26 is defined as the professional component (PC). The PC is outlined as a physician's service, which may include technician supervision, interpretation of results and a written report. Use modifier 26 when a physician interprets but does not perform the test.

What is the difference between facility and professional coding?

Facility coding reflects the volume and intensity of resources utilized by the facility to provide patient care, whereas professional codes are determined based on the complexity and intensity of provider performed work and include the cognitive effort expended by the provider.

What is a technical component in medical billing?

• The technical component (TC) represents the cost of the equipment, supplies and personnel to perform the procedure. It is identified by. appending modifier TC to the procedure code.

What is a technical component modifier?

Modifier TC is used when only the technical component (TC) of a procedure is being billed when certain services combine both the professional and technical portions in one procedure code. Use modifier TC when the physician performs the test but does not do the interpretation.

What is the difference between 26 and TC modifier?

Technical Component (TC) is assigned when the physician does not own the equipment or facilities or employs the technician. In short, 26 modifier is assigned to pay for the physician services only. While TC modifier is assigned for the facilities used or the equipment used to perform the procedure.

What is the technical component of pathology?

The traditional pathology model that the majority of physician's practices still employ is the “global” model, in which the laboratory provides all of the pathology services (both Page 2 2 the technical component - preparing the slide and the professional component - providing the diagnosis), and bills the payor for ...

What is technical billing?

What Is Technical Billing? Unlike pro-fee billing, technical billing is used when paying for the use of facilities, their gear and other supplies. Technical billing does not include the expenses of a professional physician's services, but it does include the other services that have to do with the visit.

What is a PC TC indicator?

PC/TC indicator 5 is defined as “Incident to Codes.” This indicator identifies codes that describe services covered incident to a physician's service when they are provided by auxiliary personnel employed by the physician and working under his or her direct supervision.

What is a TC and PC?

Generally, imaging services are split into technical and professional components (the TC and PC), each separately billable to the local Medicare contractor. Medicare pays under the MPFS for the TC of imaging services furnished to Medicare beneficiaries who are not patients of any hospital, and who receive services in a physician's office, ...

What is PC of service?

PC of a service is for physician work interpreting a diagnostic test or performing a procedure, and includes indirect practice and malpractice expenses related to that work. Modifier 26 is used with the billing code to indicate that the PC is being billed.

What is a modifier TC?

Modifier TC is used with the billing code to indicate that the TC is being billed.

Is CDT a warranty?

CDT is provided "as is" without warranty of any kind, either expressed or implied, including but not limited to, the implied warranties of merchantability and fitness for a particular purpose. No fee schedules, basic unit, relative values or related listings are included in CDT.

Can a PC and TC be used with a billing code?

PC and TC do not apply to physician services that cannot be distinctly split into professional and technical components. Modifiers PC and TC may not be used with these billing codes.

What is PC/TC indicator 8?

PC/TC indicator “8” is defined as “…separate payment may be made only if the physician interprets an abnormal smear for hospital inpatient…” CMS has designated place of service "21" as inpatient and it is the only recognized place of service designation when the PC/TC indicator is '8.' All other place of service designations are inappropriate.

What is CPT book evaluation?

Per the CPT Book Evaluation and Management (E/M) Services Guidelines, reviewing and analyzing diagnostic tests and other information is part of the Medical Decision Making component of E/M services. (AMA10) Emergency room physicians, orthopedic surgeons, trauma specialists, surgeons, internists, family physicians, podiatrists and other treating physicians who routinely review pathology results, chest x-rays, EKGs, and/or other diagnostic data evaluation as an integral part of their reimbursed patient care services are not entitled to an additional reimbursement of a professional component for that review. The review and evaluation of diagnostic data is covered by the reimbursement for office visit and treatment. (AMA11)

Is it appropriate to report technical and professional components separately?

“If the technical and professional components of the service are performed by the same provider, then it is not appropriate to report the components of the service separately.” (CPT Assistant3)

What is a professional/technical split?

The term “professional/technical split” is used to reference a Global Service assigned a PC/TC Indicator 1 that may be “split” into a Professional Component and a Technical Component. Each Global Service is listed on a separate row followed immediately by separate rows listing the corresponding Technical Component and Professional Component.

What is the percentage of reimbursement for technical component codes?

When eligible for reimbursement, Professional Component/Technical Component codes with a CMS PC/TC Indicator 2, 3, 4, 5, 6, or 8 are reimbursed at 100% of the Allowable Amount.

What is a CMS PC/TC indicator 1?

CPT or HCPCS codes assigned a CMS PC/TC Indicator 1 are comprised of a Professional Component and a Technical Component which together constitute the Global Service. The Professional Component (PC), (supervision and interpretation) is reported with modifier 26, and the Technical Component (TC) is reported with modifier TC.

What should be included in a report?

The report or record should include a description of the studies and/or procedures performed and any contrast media and/or radio-pharmaceuticals (including specific administered activities, concentration, volume, and route of administration when applicable), medications, catheters, or devices used, if not recorded elsewhere.

What is the same individual physician?

Unless otherwise specified, for the purposes of this policy, Same Individual Physician or Other Qualified Health Care Professional is defined as the same individual rendering health care services reporting the same Federal Tax Identification number.

Is a CMS 1500 claim a professional claim?

The Technical Component of services reported on a CMS-1500 claim form with an SG modifier (Ambulatory surgical center [ASC] facility service) is not reimbursed as a professional claim. Claim lines reported with modifier SG indicate a facility charge and are reimbursed as a facility claim.

Is PC/TC 8 a POS?

The CMS NPFS guidelines advise that payment should not be recognized for PC/TC Indicator 8 codes, which are defined as physician interpretation codes, furnished to patients in the outpatient or non-hospital setting (POS other than 21).

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