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ICD-9 coding of DJD I agree with using 715.96 for the knee. I am a physician coder also. I have been taught, if my physician does not specify localized then to default to the unspecified. I was taught to code exactly what the physician says.
The grouper logic is detailed in the Definitions Manual for Version 32 of the MS-DRG Grouper, which is available online via the CMS website. ICD-10 combination codes that incorporate a CC or MCC into a single diagnosis code pose an issue for DRG grouping. A combination code is a single code which represents multiple clinical issues. Clinical concepts that required two or more codes in ICD-9 only require a single combination code to be assigned in ICD-10.