What Are the Seventh Characters Used for Encounter Types?

The International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM) is the standard system used in the United States for reporting patient diagnoses in healthcare settings. These codes are used for tracking public health data, medical billing, and processing insurance claims. An ICD-10-CM diagnosis code is typically structured to be between three and seven characters long, offering increasing specificity with each added position. Certain categories, particularly those related to injuries, poisonings, and external causes, require a mandatory seventh character to provide crucial information about the patient’s current episode of care.

The Structural Requirement of the 7th Character

The structural requirement for the seventh character ensures complete data capture, especially for codes found within Chapter 19 of the ICD-10-CM system, which covers injuries and external causes. These injury codes must convey the nature, site, and context of the encounter. Mandating a full seven characters ensures this contextual information is always included in the final code.

To maintain the precise seven-character structure, the system uses the placeholder character ‘X’. If a code is four or five characters long but requires a seventh character extension, the ‘X’ is inserted into the vacant positions (fifth and/or sixth slots). For example, a four-character code requiring a seventh character needs two ‘X’ placeholders. The ‘X’ placeholder does not add clinical meaning; its sole purpose is to reserve the correct space for the required final character, maintaining uniformity and accuracy.

Defining the Three Primary Encounter Types

The three most common seventh characters used to describe the encounter type are ‘A’, ‘D’, and ‘S’, each representing a distinct phase in the management of an injury or condition.

Initial Encounter (‘A’)

The character ‘A’ signifies an Initial Encounter, which applies when the patient is receiving active treatment for the condition. Active treatment includes procedures such as surgical repair, evaluation and treatment in the emergency department, or the initial stages of medication management for the injury. This character is used for every visit during the active treatment phase, regardless of whether it is the first time the specific provider has seen the patient for the injury.

Subsequent Encounter (‘D’)

The character ‘D’ denotes a Subsequent Encounter, which is used once the patient has completed the active treatment phase and is now receiving routine care during the healing or recovery period. Examples of subsequent encounters include follow-up visits to check on the healing status of a fracture, cast changes or removal, suture removal, or physical therapy sessions. The use of ‘D’ indicates that the care being rendered is focused on monitoring the body’s natural healing process rather than intervening with new active treatment.

Sequela (‘S’)

The character ‘S’ is reserved for Sequela, which refers to a complication or condition that arises as a direct result of a previous injury or illness that is otherwise considered healed. A sequela represents the late effects of the original injury, such as a scar forming after a severe burn or chronic joint pain following an old fracture. When coding for a sequela, the ‘S’ is appended to the original injury code to identify it as the cause of the residual effect. A second, separate code is then used to describe the nature of the sequela itself.

Applying the Character: Documentation and Context

The selection of the appropriate seventh character is determined by the specific type of care documented by the physician, not the number of times a patient has been seen. The distinction hinges entirely on whether the patient is undergoing active treatment (‘A’) or routine healing and aftercare (‘D’). The provider’s clinical notes must clearly reflect the intent of the visit to justify the choice.

Active treatment (‘A’) involves interventionist care aimed at curing the injury, which can include multiple visits for procedures, re-evaluation, or a new surgical procedure due to a complication. For instance, a patient returning to the operating room for hardware revision on a fractured bone is still receiving active treatment. Routine care (‘D’) focuses on facilitating recovery, such as an X-ray to check fracture alignment or medication adjustment during the recovery phase.

If a patient presents with a new complication requiring active intervention, the character ‘A’ is used for the code describing the new complication. This focus on the clinical context ensures that the diagnosis code accurately reflects the specific healthcare resources being utilized.