In coding terms, what does "bundling" refer to?

Bundling in coding refers to the practice of grouping several related procedures under one code for billing purposes. This approach is utilized to simplify the billing process and to reflect the fact that certain services are commonly performed together and should be treated as a single unit for payment. For example, a surgical procedure might include multiple components, such as anesthesia, the surgery itself, and postoperative care, all typically bundled into one comprehensive code.

This helps to avoid separate billing for each part of the procedure, which can become cumbersome and may lead to billing errors or increased administrative work. Bundling also reflects a more accurate representation of healthcare services provided during a single encounter, ensuring proper compensation while also preventing overbilling.

Other options pertain to activities that do not accurately describe the concept of bundling. Performing multiple procedures in one visit does not inherently involve coding or billing connections, refunding overpayments deals with financial transactions rather than procedure coding, and combining patient files relates to healthcare data management rather than billing practices.