What does 'bundling' refer to in healthcare coding?

Bundling in healthcare coding refers to the practice of grouping multiple related services into a single code. This coding approach is designed to streamline billing and reflect the delivery of care more accurately when various services are provided in conjunction. By bundling, healthcare providers can simplify billing processes, reduce paperwork, and potentially lower costs both for healthcare organizations and patients.

For example, a surgical procedure may include preoperative, intraoperative, and postoperative services that can all be grouped under one code rather than coding each service separately. This reflects the idea that when these services are provided together, they are interconnected in terms of patient care, and thus it's more logical to represent them as a single entity in coding terms. This practice can also help avoid the common issue of overcoding individual services, ensuring that the billing represents a comprehensive view of the services delivered.