Reading Between the Lines – Algorithms of Medical Necessity (Part I of II)

The rules of medical necessity and medical decision-making (MDM) are sure to trump the complexity of tax law for the foreseeable future. As the government continues to pump auditing contractors with funds to "fish," the standard algorithm to determine medical necessity has become highly proprietary as providers find themselves under investigation for issues tied to inpatient and outpatient evaluation and management services. As the first of two pieces on this matter, this article will explore the processes of calculating medical necessity, and medical decision-making - and the subjective regulations that factor in.