Billing and Coding: Total Hip Arthroplasty

The following billing and coding guidance is to be used with its associated
Local Coverage Determination.

**Documentation Requirements**  
  
In order to qualify for coverage of both Medicare Part A inpatient services
and Part B provider services the medical record must contain documentation
that fully supports the medical necessity and justification of the procedure
performed and must be made available to Noridian upon request. When the
documentation does not meet the criteria for the service(s) rendered or the
documentation does not establish the medical necessity for the service(s),
such service(s) will be denied as not reasonable and necessary.  
  
A history and physical, discharge summary, physician progress notes and an
operative report are typically in the hospital record for the procedures in
this LCD. _Other relevant information addressing coverage criteria related to
the patient 's episode of care prior to the hospitalization, should be
included in the hospital record (see below)._ Failure to include this
information in the hospital record may result in denial of coverage for Part A
services and trigger a review of the Part B provider claim to determine
whether the Part B service rendered was reasonable and necessary.  
  
**When the procedure is indicated for advanced joint disease, the following
should be documented in the medical record:**  
  
 Arthritis of the hip supported by X-ray, MRI or CT. The X-ray, MRI or CT, as
medically necessary, should demonstrate and the provider must document one or
more of the following:  
  
a) subchondral cysts,  
b) subchondral sclerosis,  
c) periarticular osteophytes,  
d) joint subluxation,  
e) the degree of joint space narrowing,  
f) avascular necrosis or  
g) bone on bone articulations  
  
 Pain or functional disability at the hip. Pain and/or functional disability
should be described in context. For example, documented pain that interferes
with ADLs (functional disability), or pain that is increased with initiation
of activities or pain that increases with weight bearing.  
  
 Unsuccessful conservative therapy (non-surgical medical management) if
appropriate. The documentation should demonstrate a history of a reasonable
attempt at conservative therapy as appropriate for the patient in his/her
current episode of care. For example, documented trial of NSAIDs or
contraindication to such therapy and/or documented supervised physical
therapy. Documentation should support that ADLs are diminished due to pain
and/or disability despite non-surgical medical management.  
  
 For patients with significant conditions or co-morbidities, the risk/benefit
of non-cardiac surgery, such as THA should be appropriately addressed in the
medical record.  
  
**Medical record documentation for other THR/THA indications outlined in the
LCD should include the following, when indicated:**  
  
 Supporting evidence (e.g., pathology reports and referral from an Oncologist
for a malignancy of the joint or X-ray of a fracture).  
  
 Pain at the hip when indicated as a reason for the procedure (e.g., for
revision/replacement THR/THA). For example, documented pain that interferes
with ADLs (functional disability), pain that is increased with initiation of
activities or pain that increases with weight bearing.  
  
 For patients with significant conditions or co-morbidities, the risk/benefit
of non-cardiac surgery, such as THR/THA should be appropriately addressed in
the medical record.  
  
 When infection is the reason for revision THR/THA surgery, laboratory and/or
pathology reports must be in the medical record and all documentation
regarding treatment of the infection and a physician note indicating that it
is appropriate to proceed with surgery should be in the medical record as
well.  
  
In the instance that the patient is undergoing a bilateral hip replacement,
all criteria listed above would apply to the bilateral surgery when indicated.
The medical record should also support the medical necessity for performing a
bilateral THR/THA.  
  
The treating physician must discuss the significant benefit and risks with the
patient. In order to meet Medicare's reasonable and necessary (R&N) threshold
for coverage of a procedure, the physician's documentation for the case should
clearly support both the diagnostic criteria for the indication (standard test
results and/or clinical findings as applicable) and the medical need (the
procedure does not exceed the medical need and is at least as beneficial as
existing alternatives & the procedure is furnished with accepted standards of
medical practice in a setting appropriate for the patient's medical needs and
condition). **Lacking compelling arguments for an exception in the supporting
documentation, the hospital and physician services can be denied.**  
  
If in certain circumstances the patient does not meet all of the required
criteria outlined in the local coverage determination (LCD) for a procedure,
but the treating physician feels that the procedure is a covered procedure
given the current standards of care, then the documentation must clearly
outline the patient's episode of care that supports the major procedure and
must clearly address the reason(s) for coverage. For example, if clinical
findings (or lack of) for an indication are not consistent with the LCD
criteria, it should be directly addressed in the pre procedure documentation.
For example, _if certain conservative measures are not necessary or
appropriate for a given patient, it should be directly noted in the pre
procedure documentation. The clinical judgment of the treating physician is
always a consideration if clearly addressed in the pre procedure record and if
consistent with the episode of care for the patient as documented in patient
records and claim history._  
  
 _Review of the medical record must indicate that inpatient hospital care was
medically necessary, reasonable, and appropriate for the diagnosis and
condition of the beneficiary at any time during the stay. The beneficiary must
demonstrate signs and/or symptoms severe enough to warrant the need for
medical care and must receive services of such intensity that they can be
furnished safely and effectively only on an inpatient basis._  
  
 **Utilization Guidelines**  
  
It is expected that these services would be performed as indicated by current
medical literature and/or standards of practice. When services are performed
in excess of established parameters they may be subject to review for medical
necessity.  
  
The devices/implants utilized for total hip replacement surgeries are
regulated by the FDA as medical devices. The devices used should be class II
or class III devices that meet the requirements outlined in CFR 21, Chapter 1,
subchapter H, Part 888.