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What is the most critical adaptation needed in medical coding

Questioner

Dr. Parul, With the continued shift towards value-based care, what is the most critical adaptation needed in medical coding for 2025?

Dr. Parul

You know, when we talk about the future of medical coding, especially in 2025, it’s no longer just about checking boxes or recording procedures. It’s about something much deeper.

The biggest shift we’re seeing is the need to capture the full story of the patient—not just what happened during a visit, but why it happened, and how care was coordinated around that.

This change is huge, and it’s reshaping how we think about coding, outcomes, and value.

The most important adaptation needed in medical coding for 2025 is ensuring that we capture the complete clinical and social profile of the patient. That’s the kind of storytelling that keeps patients healthier—and ensures providers are fairly reimbursed for doing the right thing.

Value-based care rewards providers who focus on keeping patients healthy, not just treating them when they’re sick. To support this shift, coders need to:

  • Accurately capture chronic conditions using updated HCC codes to reflect the patient’s true risk profile,
  • Code for Social Determinants of Health (SDoH), such as housing insecurity or transportation challenges, which directly impact patient care and outcomes,
  •  And most importantly, apply new CMS codes that reflect evolving care models—including care coordination, telehealth services, and caregiver training.

So, Let me explain this to you with an example

Let’s say a patient with diabetes is seen for follow-up, and the provider also discusses about their home situation and the patient shares that they’re having trouble affording healthy food, and so the doctor refers them to a local nutrition program.
Now, if this would have been old fee-for-service model, you’d just code for the diabetes and the visit—that’s it.

But in 2025 under value-based care, coding goes a step further:

  • You still code the diabetes using the right HCC code (like E11.9),
  • But now, you also add a Z-code for food insecurity (Z59.4) to show what’s really affecting the patient’s health,
  • And if the provider spent time helping with care planning or setting up community support, you’d use a G-code like G0017 for care management.

Together, these codes will show the full effort being made to improve the patient’s health ensuring proper reimbursement, risk adjustment, and alignment with quality metrics.

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