What is the purpose of modifier 32 in medical coding?

The purpose of modifier 32 in medical coding is to indicate that a consultation or service has been mandated by a third party, such as an insurance company or a governmental agency. This modifier is employed when a healthcare provider is required to perform an evaluation or consultation due to specific circumstances dictated by an external authority. It serves as a communication tool to inform payers that the service is not initiated solely at the discretion of the patient or the healthcare provider, but rather prompted by external requirements.

This context is particularly important for claims processing, as it helps ensure that the provider receives appropriate reimbursement for the services rendered under these specific circumstances. The use of modifier 32 clarifies the nature of the service and distinguishes it from standard consultations that are typically requested by the patient or a referring physician.