Types of Medical Coding Explained for Freshers
Medical coding is divided into different types based on patient setting, medical specialty, and coding purpose. Understanding these types helps freshers choose the right career path and answer interview questions confidently.

1. Inpatient Medical Coding
Inpatient medical coding is done for patients who are admitted to the hospital for more than 24 hours.
Key points:
Used for hospitalized patients
Includes detailed diagnoses and procedures
More complex than outpatient coding
Coding systems used:
ICD-10-CM (Diagnosis)
ICD-10-PCS (Procedures)
Common roles:
IP Coder
IPDRG Coder
2. Outpatient Medical Coding
Outpatient medical coding is for patients who receive treatment without hospital admission.
Key points:
Patient is not admitted overnight
Less complex compared to inpatient coding
High volume of cases
Coding systems used:
ICD-10-CM
CPT
HCPCS Level II
Common roles:
OP Coder
Clinic Coder
3. Professional (Physician) Coding
Professional coding focuses on services provided by doctors and healthcare professionals.
Key points:
Based on physician documentation
Used for office visits and consultations
Coding systems used:
CPT
ICD-10-CM
HCPCS
Common roles:
Physician Coder
E&M Coder
4. Facility Coding
Facility coding is used by hospitals and healthcare facilities for billing facility charges.
Key points:
Covers hospital services and resources
Different from physician billing
Coding systems used:
ICD-10-CM
CPT
ICD-10-PCS (for inpatient)
5. Risk Adjustment Coding (HCC Coding)
Risk adjustment coding is used mainly for Medicare patients to show disease severity.
Key points:
Focuses on chronic conditions
Helps calculate patient risk score
Coding systems used:
ICD-10-CM
HCC model
Common roles:
HCC Coder
Risk Adjustment Coder
6. IPDRG Medical Coding
IPDRG medical coding is a specialized form of inpatient coding.
Key points:
Focuses on Diagnosis Related Groups (DRG)
Impacts hospital reimbursement
Requires strong anatomy knowledge
Coding systems used:
ICD-10-CM
ICD-10-PCS
Common roles:
IPDRG Coder
Inpatient DRG Analyst
7. Ambulatory Surgery Coding (ASC Coding)
ASC coding is used for same-day surgical procedures.
Key points:
No overnight stay
Focus on surgical services
Coding systems used:
CPT
ICD-10-CM
HCPCS
8. Emergency Department Coding
Emergency coding is done for patients treated in the emergency room.
Key points:
Time-sensitive documentation
Includes trauma and urgent care
Coding systems used:
CPT
ICD-10-CM
9. Anesthesia Coding
Anesthesia coding is used for anesthesia services during procedures.
Key points:
Based on time and complexity
Special anesthesia modifiers used
Coding systems used:
CPT
Anesthesia modifiers
10. Auditing and Quality Coding
Medical coding auditing ensures accuracy and compliance.
Key points:
Reviews coded charts
Identifies errors and compliance issues
Common roles:
Coding Auditor
Quality Analyst
Interview Question You May Get
Q: Which type of medical coding is best for freshers?
Answer:
Outpatient coding, professional coding, and trainee IPDRG roles are good starting points for freshers because they offer training and gradual exposure.
Final Summary
Medical coding has many types, including:
Inpatient coding
Outpatient coding
Professional coding
Facility coding
Risk adjustment coding
IPDRG coding
Each type offers different learning opportunities and career growth paths.