Formal Terminology Advanced Notes & Documentation

MDM

Formal Definition

Medical Decision Making: the component of an evaluation and management (E&M) note that documents the complexity of data reviewed, problems addressed, and management options considered — used to justify billing level under AMA CPT guidelines.

How It's Used on the Ward

"MDM level" or "your MDM needs to support the level you're billing" — the section that determines whether a visit bills as a level 3, 4, or 5.

Example

""Billing audit feedback: 'You billed a 99215 but your MDM documents a single stable problem with straightforward management. That's a 99213 at best. Your note needs to reflect the actual complexity of what you did.'""

Clinical Context

Since 2021, E&M leveling is based on MDM or total time — not history and exam elements. MDM has three components: (1) number and complexity of problems, (2) data reviewed/ordered, (3) risk of complications or morbidity. A new diagnosis with prescription drug management = moderate complexity. High complexity requires high-risk treatment decisions or multiple chronic conditions. Learn this — it's directly tied to how your institution gets paid.

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