rcm glossary

Major diagnostic category (MDC)

Major diagnostic category (MDC) is a classification system used in healthcare revenue cycle management to group patients with similar diagnoses for billing and reimbursement purposes.

Accelerate your revenue cycle

Boost patient experience and your bottom line by automating patient cost estimates, payer underpayment detection, and contract optimization in one place.

Get a Demo

What is Major Diagnostic Category (MDC)?

Major Diagnostic Category (MDC) is a classification system used in healthcare revenue cycle management (RCM) to categorize patients into groups based on their primary diagnosis. It is a part of the Diagnosis-Related Group (DRG) system, which is used by healthcare providers and payers to determine the appropriate reimbursement for inpatient hospital stays.

The MDC system was developed by the Centers for Medicare and Medicaid Services (CMS) in the United States as a way to standardize the classification of patients and their diagnoses. It groups together similar types of medical conditions and procedures to facilitate the analysis of healthcare data and the calculation of reimbursement rates.

Difference between Major Diagnostic Category (MDC) and Diagnosis-Related Group (DRG)

While the terms Major Diagnostic Category (MDC) and Diagnosis-Related Group (DRG) are often used interchangeably, they refer to different aspects of the same classification system. The MDC is a higher-level classification that groups patients based on their primary diagnosis, while the DRG is a more specific classification that takes into account additional factors such as secondary diagnoses, procedures performed, patient age, and comorbidities.

In other words, the MDC provides a broad categorization of patients based on their primary diagnosis, while the DRG further refines this classification by considering additional clinical and demographic factors. The DRG system is used to assign a specific code to each patient, which is then used to determine the appropriate reimbursement rate for their hospital stay.

How is Major Diagnostic Category (MDC) determined?

The determination of the Major Diagnostic Category (MDC) for a patient is based on their primary diagnosis, which is the main reason for their hospitalization. The primary diagnosis is typically identified by the attending physician and is recorded in the patient's medical record.

The MDC system consists of 25 major diagnostic categories, each representing a group of related medical conditions. These categories cover a wide range of specialties and conditions, including diseases of the respiratory system, circulatory system, musculoskeletal system, and more.

To assign the appropriate MDC, the primary diagnosis is matched to the corresponding category based on the International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM) codes. These codes are standardized codes used to classify and report medical diagnoses and procedures.

Examples of Major Diagnostic Categories (MDC)

To provide a better understanding of Major Diagnostic Categories (MDC), let's explore a few examples:

1. MDC 1: Diseases and Disorders of the Nervous System  

- Primary diagnoses: Stroke, epilepsy, multiple sclerosis, Parkinson's disease.

2. MDC 5: Diseases and Disorders of the Circulatory System  

- Primary diagnoses: Heart failure, coronary artery disease, arrhythmias, hypertension.

3. MDC 8: Diseases and Disorders of the Musculoskeletal System and Connective Tissue  

- Primary diagnoses: Fractures, osteoarthritis, rheumatoid arthritis, scoliosis.

4. MDC 19: Mental Diseases and Disorders  

- Primary diagnoses: Major depressive disorder, schizophrenia, bipolar disorder, anxiety disorders.

These examples illustrate how patients with different primary diagnoses are grouped into specific Major Diagnostic Categories. The MDC assigned to a patient plays a crucial role in determining the appropriate reimbursement rate for their hospital stay.

Conclusion

Major Diagnostic Category (MDC) is a classification system used in healthcare revenue cycle management (RCM) to categorize patients based on their primary diagnosis. It is a part of the Diagnosis-Related Group (DRG) system and helps standardize the classification of patients and their diagnoses.

Understanding MDC is essential for healthcare providers and payers as it enables accurate reimbursement calculations and facilitates data analysis. By grouping patients into major diagnostic categories, healthcare organizations can gain insights into the prevalence of specific medical conditions, resource utilization, and cost patterns.

Improve your financial performance while providing a more transparent patient experience

Full Page Background