FY 2027 MEDESUN®
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Section I.C.16 · P00-P96 · FY 2027

Chapter 16 — Certain Conditions Originating in the Perinatal Period

The newborn record: Z38 once and only once, the six clinical-significance criteria, prematurity and birth weight, and the congenital-sepsis default.

Guidelines effective October 1, 2026 – September 30, 2027

The perinatal period is before birth through the 28th day following birth — but Chapter 16 codes may be used throughout the life of the patient if the condition is still present. The two absolute rules are the mirror image of each other: no Chapter 16 code on the maternal record, and no Chapter 15 code on the newborn record.

Newborn record — perinatal period is birth through the 28th day of lifeBirth episodeZ38.- is the principal diagnosis,assigned once, at the birth facility onlySuspected condition ruled outZ05.- — secondary to Z38 on thebirth record; never with signs presentSepsis, type not stateddefault is congenital → P36.-add B96 only if P36 omits the organismBirth process or community acquired?if the record does not say, the default is the birth process→ use the chapter 16 codeBirth weight and gestational age both documentedtwo codes from P07 — birth weight sequencedbefore gestational ageNEVER a chapter 15 code on the newborn record. NEVER a chapter 16 code or a Z38 code on the mother's record.
Section I.C.16 — the newborn record

General perinatal rules#

#RuleDetail
1Use of Chapter 16 codesNEVER Codes in this chapter are never for use on the maternal record. NEVER Codes from Chapter 15 are never permitted on the newborn record. Chapter 16 codes may be used throughout the life of the patient if the condition is still present
2Principal diagnosis for the birth recordA code from category Z38 liveborn infants according to place of birth and type of delivery is the principal diagnosis. Assigned only once, at the time of birth. NEVER If a newborn is transferred to another institution, Z38 is not used at the receiving hospital. Z38 is used only on the newborn record, never on the mother's
3Codes from other chaptersMay be used with Chapter 16 codes where they provide more specific detail. Signs and symptom codes may be assigned where a definitive diagnosis has not been established. Where the reason for the encounter is a perinatal condition, the Chapter 16 code is sequenced first
4After the perinatal periodWhere a condition originates in the perinatal period and continues throughout the life of the patient, the perinatal code continues to be used regardless of the patient's age
5Birth process or community acquiredWhere a newborn has a condition that may be either due to the birth process or community acquired and the documentation does not indicate which, the default is due to the birth process and the Chapter 16 code is used. If the condition is community-acquired, a Chapter 16 code is not assigned
6Code all clinically significant conditionsAll clinically significant conditions noted on routine newborn examination are coded. See the criteria below
A newborn condition is clinically significant if it requiresPresent in Section III?
Clinical evaluationYes
Therapeutic treatmentYes
Diagnostic proceduresYes
Extended length of hospital stayYes
Increased nursing care and/or monitoringYes
Has implications for future health care needsEXCEPTION No — this sixth criterion is unique to the perinatal guidelines

Observation of newborns — category Z05#

SituationRule
When Z05 appliesA healthy newborn is evaluated for a suspected condition or disease that is determined after study not to be present
When it does notNEVER Do not use Z05 where the patient is documented to have signs or symptoms of a suspected problem — code the sign or symptom instead
On the birth recordZ05 is a secondary code, assigned after the code from category Z38
On other than the birth recordZ05 may be the principal or first-listed code for readmissions or encounters where Z38 no longer applies. Codes from Z05 are for use only for healthy newborns and infants for which no condition is found to be present after study

Prematurity, birth weight and newborn sepsis#

TopicRule
PrematurityProviders use different criteria in determining prematurity. NEVER A code for prematurity is not assigned unless it is documented
Categories P05 and P07Assignment is based on the recorded birth weight and estimated gestational age
Both birth weight and gestational age availableALWAYS Two codes from category P07, with the code for birth weight sequenced before the code for gestational age
Low birth weight and immaturity statusCategory P07 codes are for use for a child or adult who was premature or had a low birth weight as a newborn where this is affecting the patient's current health status
Bacterial sepsis of newborn — category P36Includes congenital sepsis. Where a perinate is documented as having sepsis without documentation of congenital or community acquired, the default is congenital and a code from P36 is assigned
Organism codes with P36If the P36 code includes the causal organism, NEVER do not assign an additional code from B95 or B96. If the P36 code does not include the organism, assign an additional code from B96. Use additional codes for severe sepsis R65.2- and any associated acute organ dysfunction if applicable
Stillbirth — P95For use only in institutions that maintain separate records for stillbirths. NEVER No other code is used with P95, and P95 is never used on the mother's record
COVID-19 in a newbornPositive test with no documentation of a specific type of transmission → U07.1 plus codes for associated manifestations in neonates. Provider documents the condition was contracted in utero or during the birth process → P35.8 and U07.1. On the birth episode, Z38 remains the principal diagnosis

Practice questions#

Q1A newborn delivered at Hospital A is transferred to Hospital B's neonatal intensive care unit on day one. What does Hospital B assign as the principal diagnosis?

  1. AA code from category Z38
  2. BThe perinatal condition that occasioned the transfer
  3. CZ05.-
  4. DA code from Chapter 15
Show answer & rationale

Correct answer: B. The perinatal condition that occasioned the transfer

Rationale. Guideline I.C.16.a.2 states that a code from category Z38 is assigned only once, to a newborn at the time of birth, and that if a newborn is transferred to another institution a code from category Z38 should not be used at the receiving hospital. Guideline I.C.16.a.3 then directs that where the reason for the encounter is a perinatal condition, the code from chapter 16 should be sequenced first.

Q2A newborn's record documents sepsis with no statement of whether it is congenital or community acquired. What is assigned?

  1. AA code from A41 with B96
  2. BA code from category P36
  3. CR65.20 alone
  4. DNo code until the provider clarifies
Show answer & rationale

Correct answer: B. A code from category P36

Rationale. Guideline I.C.16.f states that category P36 bacterial sepsis of newborn includes congenital sepsis, and that if a perinate is documented as having sepsis without documentation of congenital or community acquired, the default is congenital and a code from category P36 should be assigned. If the P36 code includes the causal organism, no additional B95 or B96 code is assigned; if it does not, an additional code from B96 is added.

Q3A newborn's record documents both a birth weight of 1,450 grams and an estimated gestational age of 31 weeks. What is assigned?

  1. AOne code for birth weight
  2. BOne code for gestational age
  3. CTwo codes from P07, birth weight sequenced before gestational age
  4. DTwo codes from P07, gestational age sequenced first
Show answer & rationale

Correct answer: C. Two codes from P07, birth weight sequenced before gestational age

Rationale. Guideline I.C.16.d states that when both birth weight and gestational age are available, two codes from category P07 should be assigned, with the code for birth weight sequenced before the code for gestational age. The same guideline notes that a code for prematurity should not be assigned unless it is documented, because providers use different criteria in determining prematurity.

Q4A healthy newborn is evaluated on the birth admission for suspected sepsis, which is ruled out after study. No signs or symptoms were documented. What is assigned?

  1. AZ05.1- as the principal diagnosis
  2. BA code from Z38 as principal, with Z05.1- as a secondary code
  3. CA code from P36
  4. DZ05.1- only
Show answer & rationale

Correct answer: B. A code from Z38 as principal, with Z05.1- as a secondary code

Rationale. Guideline I.C.16.b.3 states that a code from category Z05 is to be used as a secondary code after the code from category Z38 on a birth record. Guideline I.C.16.b.1 permits Z05 only where a healthy newborn is evaluated for a suspected condition determined after study not to be present, and prohibits it where the patient is documented to have signs or symptoms — in which case the sign or symptom is coded.

Q5A newborn has a condition that could be due to the birth process or could be community acquired, and the documentation does not say which. What is the default?

  1. ACommunity acquired; do not use a Chapter 16 code
  2. BDue to the birth process; use the Chapter 16 code
  3. CQuery the provider before coding anything
  4. DAssign both a Chapter 16 code and a community-acquired code
Show answer & rationale

Correct answer: B. Due to the birth process; use the Chapter 16 code

Rationale. Guideline I.C.16.a.5 states that if a newborn has a condition that may be either due to the birth process or community acquired and the documentation does not indicate which it is, the default is due to the birth process and the code from Chapter 16 should be used. If the condition is documented as community-acquired, a code from Chapter 16 should not be assigned.

Scenarios#

Scenario 1A normal birth with one clinically significant finding

A single liveborn infant is delivered vaginally in hospital. On routine examination the newborn is noted to have physiological jaundice requiring phototherapy and an extended stay of 24 hours.

Show coded answer & rationale
SeqCodeDescription
1Z38.00Single liveborn infant, delivered vaginally — principal diagnosis
2P59.9Neonatal jaundice, unspecified — or the specific code the record supports

Rationale. Guideline I.C.16.a.2 makes Z38 the principal diagnosis for the birth episode on the newborn record. Guideline I.C.16.a.6 requires that all clinically significant conditions noted on routine newborn examination be coded, and this finding meets at least three of the six criteria — therapeutic treatment, extended length of stay, and increased nursing care or monitoring. Under Appendix I, perinatal conditions present at birth or developing in utero are assigned POA indicator Y, because newborns are not considered admitted until after birth.

Guideline: Section I.C.16.a.2, I.C.16.a.6; Appendix I

Scenario 2A perinatal condition still present in an adult

A 34-year-old is seen for management of a chronic condition documented by the provider as originating in the perinatal period and still present.

Show coded answer & rationale
SeqCodeDescription
1P-codethe applicable Chapter 16 code for the condition

Rationale. Guideline I.C.16.a.1 states that chapter 16 codes may be used throughout the life of the patient if the condition is still present, and I.C.16.a.4 adds that where a condition originates in the perinatal period and continues throughout the life of the patient, the perinatal code should continue to be used regardless of the patient's age. Note the limit at I.C.16.c.2: the separate rule permitting codes for conditions the provider specifies as having implications for future health care needs should not be used for adult patients.

Guideline: Section I.C.16.a.1, I.C.16.a.4, I.C.16.c.2

Scenario 3COVID-19 in a newborn contracted in utero

A newborn delivered by cesarean in hospital tests positive for COVID-19. The provider documents that the infection was contracted in utero.

Show coded answer & rationale
SeqCodeDescription
1Z38.01Single liveborn infant, delivered by cesarean — principal diagnosis for the birth episode
2P35.8Other congenital viral diseases
3U07.1COVID-19
4Manifestationscodes for any associated manifestations in the newborn

Rationale. Guideline I.C.16.h states that for a newborn testing positive for COVID-19 where the provider documents the condition was contracted in utero or during the birth process, codes P35.8 and U07.1 are assigned, and that when coding the birth episode in a newborn record the appropriate code from category Z38 is assigned as the principal diagnosis. Without documentation of a specific type of transmission, only U07.1 and the manifestation codes would be assigned.

Guideline: Section I.C.16.h, I.C.16.a.2

Primary sources#