Prospective Payment System (CPT) Reporting

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The Omnibus Budget Reconciliation Act mandated the use of Current Procedural Terminology (CPT) reporting. It was enacted as a Prospective Payment System (PPS) for reporting services provided to Medicare recipients. Meeting the needs of physicians to aide in reporting and communicating professional services rendered to patients through office and hospital out-patient services is why the CPT classification system was created. CPT is a descriptive listing of codes and terms for diagnostic and therapeutic procedures and medical services. The CPT manual is updated annually by the American Medical Association (AMA).
The differences in the ICD-10 (or ICD-9-CM) compared to the CPT is these classification systems were created by the World Health Organization

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