Coding

Medical Decision Making (MDM)

Medical Decision Making

One of two methods (with time) for selecting an E/M level, based on the number and complexity of problems, the amount and complexity of data reviewed, and the risk of complications.

1 min read · Last reviewed May 23, 2026

At a glance

Category
Coding
Acronym for
Medical Decision Making
Primary sources
2
Workspace handoff
revenue audit

Where this comes up

Coders meet this term inside the chart at the moment of code selection — picking the E/M level, attaching the right modifier, defending the procedure code against an NCCI edit, or answering an auditor who pulled the encounter for a payer-initiated review.

Full definition

What it is in practice

The 2021/2023 AMA E/M revisions use a three-element MDM grid (problems, data, risk). The level is set by the two highest of three. CMS accepts this method for all sites of service.

How it shows up in your practice

Document the problems addressed and the data reviewed (labs, imaging, independent historian) explicitly. Risk language — prescription drug management, possible surgery — is what frequently lifts a visit from a 3 to a 4.

Sources

Take it into the workspace

Run an MDM audit in Revenue Audit

Open revenue audit
Authored by D3rx

D3rx is a healthcare-billing and compliance research aid maintained by D3rx Inc. Articles are drafted by an LLM (Anthropic Claude) against primary HHS, OCR, CMS, eCFR, NIST, and state-regulator publications, and reviewed for restraint and source fidelity by the D3rx team.

Reviewer status: a named credentialed reviewer (CHC, CHPC, or healthcare attorney) is being engaged. Until that engagement is finalized, this page does not claim credentialed review.

This glossary entry is a research aid for billing and compliance staff. It does not provide legal, medical, or financial advice and does not replace counsel. References cited link to primary sources at HHS, OCR, CMS, eCFR, NIST, and the relevant payer or industry body.