Final answer:
The primary reason for the update to ICD-10 is to provide both greater specificity in diagnosis classifications and room for future code expansion, aiding in precise clinical documentation and billing, and accommodating new diagnoses and medical advancements.
Step-by-step explanation:
The primary reason for the ICD-10 update is E) it provides greater specificity for diagnosis classifications and room for code expansion. The International Classification of Diseases (ICD), created by the World Health Organization (WHO), is critical for health professionals in diagnosing and treating diseases. The shift to ICD-10 allowed for a more detailed categorization of diseases and medical conditions, which facilitates more precise clinical documentation and health care billing. This also ensures that there is space to include new diagnoses and medical advancements without quickly running out of coding options. Furthermore, these detailed codes are essential in managing patient care, as they are used across medical settings to guide treatment plans, aid in laboratory test ordering, and process insurance claims. For example, ICD codes direct medical coders to assign appropriate codes for procedures, which medical billers use to ensure correct reimbursement from insurance companies. Additionally, these codes are employed by vital-records keepers and epidemiologists in monitoring public health and recording statistical information on morbidity and mortality.
Two locations where you would likely find an ICD code are medical laboratories, where the codes identify necessary tests to confirm a diagnosis, and in the health-care management system, which uses the codes to verify the appropriateness of treatments and laboratory work.