Key takeaways
CPT Code 20245 covers an open bone biopsy at a deep site, such as the humeral shaft, ischium, or femoral shaft.
The code turns on depth of dissection, so a superficial open biopsy belongs under CPT 20240 instead.
Missing depth documentation is the top denial trigger, so name the exact bone structure the surgeon reached.
Modifier -59 applied without a documented separate anatomical site draws post-payment audits from Medicare contractors.
Practice management software like Pabau flags modifier conflicts before a bone biopsy claim leaves the practice.
CPT Code 20245 is the code for an open bone biopsy at a deep site. The American Medical Association (AMA) CPT code set descriptor lists the humeral shaft, ischium, and femoral shaft as its examples. If the operative note never states that the procedure reached deep bone, the claim downcodes to 20240 or bounces entirely.
The surgeon opens deep bone structures to take a tissue specimen for pathological analysis. Needle biopsies under CPT 20220 and 20225 never go that far.
An open approach calls for a surgical incision, periosteal elevation, and bone sampling under direct visualization. That extra operative work is why 20245 carries higher relative value units than its superficial counterpart.
Surgeons reach for it when imaging shows a deep lesion that cannot be sampled safely through the skin. It also applies when a prior needle biopsy came back inconclusive. The musculoskeletal chapter of the CPT set places 20245 in the general excision range, 20200 to 20251.
CPT 20245 vs CPT 20240: Superficial or deep bone biopsy
Choosing between 20240 and 20245 is where most bone biopsy coding goes wrong. Anatomical depth decides it. Procedure length and incision complexity do not.
Here is the decision rule. If the operative note names a site like the humeral shaft or femoral shaft, and describes dissection through muscle layers, 20245 applies.
If the note describes a superficial, easily palpable bone reached with minimal dissection, 20240 is correct. Upcoding from 20240 to 20245 without documented deep dissection is one of the most flagged errors in orthopedic audits.
Clinical indications and documentation requirements
Medical necessity is the first thing a payer examines on a 20245 claim. The operative note has to connect the procedure to a documented clinical indication.
Common clinical scenarios that justify the code include:
- Suspected primary or metastatic bone malignancy, where imaging or lab findings are inconclusive
- Chronic osteomyelitis where deep culture and sensitivity are needed
- Metabolic bone disease requiring histomorphometry, such as osteomalacia unresponsive to treatment
- An undiagnosed bone lesion at a deep site after an inconclusive needle biopsy
- Pre-operative tissue diagnosis before limb-salvage surgery planning
Several documentation elements decide whether the claim withstands payer scrutiny. The operative note should carry all four:
- The exact anatomical site, written as mid-diaphyseal femoral shaft rather than femur
- The surgical approach and every layer of dissection the surgeon worked through
- Confirmation that the specimen went to pathology
- The clinical indication that drove the procedure
Most Medicare Administrative Contractors (MACs) publish Local Coverage Determinations (LCDs) for bone biopsy procedures. Coverage criteria vary by jurisdiction, so check your own MAC’s LCD first. A pre-authorization submission that mirrors the LCD language cuts denial risk sharply.
Practice management software like Pabau lets you build digital intake forms that capture pre-procedure documentation and push it straight into the billing workflow.

Modifiers that apply to CPT 20245
Modifier selection directly affects reimbursement and claim acceptance. Applying the wrong modifier, or dropping one that payer policy requires, is a steady source of denials.
Treat this modifier guidance as general reference. Certified coders or compliance officers should review specific cases, especially where National Correct Coding Initiative (NCCI) edits apply. NCCI governs bundling rules and modifier applicability. Check the current NCCI tables before billing 20245 alongside other musculoskeletal codes in the same session.
Pro Tip
Run a modifier audit on your last 90 days of 20245 claims. Flag any claim where modifier -59 was applied without a documented separate anatomical site in the operative note. That pairing is a top trigger for post-payment audits from Medicare Administrative Contractors.
RVU values and how Medicare calculates payment
Relative value units (RVUs) decide how Medicare and many commercial payers calculate the fee schedule payment for 20245. Medicare applies a separate geographic practice cost index (GPCI) to each RVU component before adding them together.
The formula reads: [(Work RVU × Work GPCI) + (Practice Expense RVU × PE GPCI) + (Malpractice RVU × MP GPCI)] × Conversion Factor.
Verify 2026 RVU values directly against the CMS Physician Fee Schedule lookup. CMS refreshes RVU data every year with the Medicare Physician Fee Schedule (MPFS) final rule, and the 2026 conversion factor differs from prior years.
The FastRVU lookup tool offers a free searchable interface built on the published CMS data file.
Medicare reimbursement rates in 2026
Medicare pays 20245 under the MPFS, with separate rates for facility and non-facility settings. Because the GPCI adjusts each component geographically, payment varies by MAC jurisdiction and locality.
Confirm 2026 dollar amounts against the published CMS MPFS final rule for your MAC locality. Rates move every year with the conversion factor, so a single national figure overstates payment certainty.
Geographic adjustment matters most in high-cost markets such as San Francisco, New York, and Boston. GPCI adjustments there can lift reimbursement noticeably above the national average.
Orthopedic and sports medicine practices billing 20245 regularly should hold fee schedule data in one system rather than a spreadsheet. A conversion factor update then lands everywhere at once.
ICD-10 diagnosis codes that support the claim
Pairing 20245 with a diagnosis code that doesn’t support medical necessity is a leading cause of rejection. Select the most specific ICD-10 code the record supports.
The examples below are commonly used pairings. Verify each one against your MAC’s LCD and the current ICD-10-CM tool from the CDC.
These pairings are examples, not a complete list, and no code guarantees passage through a payer’s medical necessity edits. Code to the highest level of specificity the clinical record documents.
Musculoskeletal diagnoses reward that discipline, since a code such as M45.8 shifts with the anatomical site named in the chart. Osteomyelitis works the same way, so reach for M86.9 only when the record genuinely names no site.
Common billing errors and how to avoid them
Four error patterns account for the bulk of 20245 denials. Each one is preventable at the operative note stage, before the claim ever reaches a payer.
Upcoding from CPT 20240: Billing 20245 when the operative note describes a superficial bone site or minimal dissection. Payers with auto-adjudication edits flag this the moment the ICD-10 code doesn’t map to a deep bone site. The fix is a note that names a deep site, such as the humeral shaft or ischium. It also has to describe the dissection through the muscle layers.
Missing depth documentation: An operative note reading only “bone biopsy performed” will not support 20245. Document the surgical approach, including the incision and the fascial layers dissected. Then record the exact bone and level sampled, plus the biopsy method used.
Unbundling violations: Some practices bill 20245 alongside component codes that NCCI treats as inclusive. Billing separately for wound closure or for dissection inherent to the open approach triggers bundling edits. Check NCCI edits before adding secondary codes. Pabau’s claims management software flags common bundling conflicts at the point of claim creation.

Modifier -59 without documentation: Billing 20245 with another musculoskeletal procedure on the same date needs evidence of a separate, distinct anatomical site. The operative note must identify both sites explicitly. A note describing a single operative field will not survive audit scrutiny.
Place of service: Facility vs non-facility billing
Place of service (POS) coding decides which RVU schedule applies and how much the physician receives. A deep open bone biopsy usually happens in one of three settings:
- Hospital inpatient, POS 21
- Hospital outpatient, POS 22
- Ambulatory surgical center, POS 24
An office setting, POS 11, is clinically uncommon for a procedure of this surgical complexity.
In a facility setting the physician receives the lower facility practice expense rate. The hospital or ASC is paid separately for supplies, staff, and equipment under its own payment system. The physician’s CMS-1500 claim then captures only the professional component.
Getting the POS code wrong on the CMS-1500 is a compliance risk. Billing a non-facility rate for a procedure performed in a hospital counts as overclaiming, and it is a reliable audit trigger. HIPAA compliance practices for medical offices cover how documentation habits intersect with claims accuracy.
Related CPT codes in the bone biopsy family
Knowing the full code family helps coders avoid both undercoding and overcoding. The bone biopsy range, 20220 to 20251, covers several approaches and depths.
The same approach-and-site logic runs through the neighboring musculoskeletal codes. Bone graft codes such as CPT 20902 and CPT 20931 turn on the donor site and the graft type rather than the depth of dissection.
Excision codes split by body region too, so CPT 21026 covers excision in the facial bones while 20245 stays in the general excision range. The AAPC code lookup gives you a searchable browser for the whole musculoskeletal section.
Pro Tip
Build a quick-reference crosswalk sheet for your coding team: 20220 (needle, superficial), 20225 (needle, deep), 20240 (open, superficial), 20245 (open, deep). Post it near the operative note review station. Coders who can settle the open versus needle and superficial versus deep questions in 10 seconds make fewer errors under volume pressure.
How Pabau keeps bone biopsy claims clean
Manual fee schedule management creates avoidable risk on 20245 claims. Medical billing teams working from spreadsheets or an outdated reference document fall behind annual MPFS changes and MAC-specific LCD updates. The errors pile up quietly until a wave of denials arrives.
Practice management software like Pabau connects clinical documentation to the billing workflow. Code selection for a bone biopsy hangs on what the operative note says about depth, site, and dissection.
Pulling that detail straight into the claim form means the coder is never guessing from an incomplete record.
Pabau’s claims tools then scrub each claim before it leaves the practice, flagging modifier conflicts and pairings that trip NCCI edits. For orthopedic and musculoskeletal teams billing across the 20240 to 20245 range, that pre-submission check means fewer denials and faster payment.
Orthopedic groups that also run physical therapy services get one patient record and one billing queue for both sides of the practice. Because claims move electronically, HIPAA-compliant software keeps the submission standards and the audit trail in the same place.
Stop losing revenue to avoidable claim denials
Pabau's claims tools flag modifier conflicts, track denial patterns, and keep your fee schedule data current, so bone biopsy claims clear on the first submission.
Conclusion
The coding decision on a bone biopsy is settled in the operating room, not in the billing office. If the surgeon’s note names the deep structure and the layers dissected to reach it, the code follows on its own.
So build the depth language into your operative note template, and the modifier check into your pre-submission review. Those two habits close off most 20245 denials. Both cost far less than appealing claims one at a time.
Pabau flags modifier conflicts and weak ICD-10 pairings before a claim leaves the practice. Book a demo to see how it fits your orthopedic billing team.
Continue your research
Coding bone grafts alongside biopsies? CPT 20957 walks through the documentation a microvascular bone graft claim needs.
Billing for bone healing therapies? CPT 20979 covers the coverage criteria and payer rules for ultrasonic bone stimulation.
Need the right seventh character on a fracture code? ICD-10 S52.133S shows how the encounter type changes the code you submit.
Documenting connective tissue diagnoses? ICD-10 M35.7 explains the specificity payers expect from the clinical record.
Comparing billing tools for a musculoskeletal practice? Practice management software features sets out the claims tools that cut denial rates.
Frequently asked questions
What is CPT Code 20245?
CPT Code 20245 is the American Medical Association’s procedure code for an open bone biopsy, deep. Its descriptor examples are the humeral shaft, ischium, and femoral shaft. The procedure needs open exposure and dissection through soft tissue to reach a deep bone structure. The specimen then goes to pathology for analysis. The code sits in the musculoskeletal system surgery chapter of the CPT set.
What is the difference between CPT 20240 and 20245?
CPT 20240 covers an open bone biopsy of superficial bone, such as the sternum, spinous process, rib, or olecranon process, with minimal dissection. CPT Code 20245 covers an open bone biopsy of deep bone, such as the humeral shaft, femoral shaft, or ischium. The deep code assumes significant dissection through muscle and fascia. Anatomical depth is the distinction, and the operative note must document it to justify 20245 over 20240.
What modifiers apply to CPT Code 20245?
Commonly applied modifiers are -50 for a bilateral procedure, plus -LT and -RT for laterality where a MAC requires it. Modifier -59 covers a distinct procedural service at a separate anatomical site. Modifier -22 covers increased procedural complexity with supporting documentation, and -51 applies when 20245 is a secondary procedure. Verify all modifier guidance against current NCCI edits and your payer’s own policies before use.
What is the Medicare reimbursement rate for CPT 20245?
Medicare sets reimbursement for CPT Code 20245 annually under the Medicare Physician Fee Schedule, and it varies by locality through the GPCI adjustment. A non-facility rate applies in an office, while a lower facility rate applies in hospital or ASC settings. Check current 2026 rates through the CMS Physician Fee Schedule lookup tool. Dollar amounts change each year with the final rule conversion factor update.
What ICD-10 codes pair with CPT 20245?
Commonly paired ICD-10 codes include C40.xx for malignant neoplasm of bone in the limbs and C41.xx for other bone sites, including the ischium. Others are M86.xx for osteomyelitis, M85.xx for bone density and structure disorders, D16.xx for benign bone neoplasm, and C79.51 for secondary malignant neoplasm of bone. These are examples only. Select the most specific code your documentation supports, then verify the pairing against your MAC’s LCD.
What are the RVU values for CPT Code 20245?
RVU values for CPT Code 20245 consist of a work RVU, a practice expense RVU, and a malpractice RVU. The practice expense figure differs between facility and non-facility settings. Medicare applies a separate GPCI to each component, adds the three results together, then multiplies by the annual conversion factor. For current 2026 values, search the CMS Physician Fee Schedule lookup or use the FastRVU tool, which pulls from the published CMS data file.
How do you document medical necessity for CPT 20245?
Start with the clinical indication, such as suspected malignancy, chronic osteomyelitis, or an undiagnosed deep lesion. Add the imaging or prior diagnostic findings that justify an open biopsy over a needle biopsy. Record the exact anatomical site and the depth of dissection in the operative note, then confirm the specimen went to pathology. Review your MAC’s Local Coverage Determination as well, since criteria vary by jurisdiction.