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Current Procedural Terminology (CPT) is a coding system maintained by the American Medical Association (AMA) that provides a uniform language for reporting medical, surgical, and diagnostic services. It includes a comprehensive set of codes used by healthcare providers to describe services and procedures performed for both inpatient and outpatient care. This coding system is crucial for billing purposes, allowing for effective communication between providers, payers, and patients regarding healthcare services.

Understanding that CPT focuses specifically on healthcare services helps clarify its significance in the medical field. It is widely used in clinical settings to ensure that providers are compensated accurately for the services they deliver and helps streamline the documentation process in patient records. The importance of CPT codes lies in their role in facilitating standardized billing practices and contributing to healthcare administration efficiency.