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This video discusses the importance of medical necessity and code linkage in healthcare. Medical necessity refers to services or supplies required to diagnose or treat a medical condition, meeting accepted standards. Code linkage connects diagnosis codes with procedure codes to prove medical necessity for insurance purposes. An example is linking a pneumonia diagnosis (J 18.9) to a chest x-ray procedure (71010 or 71020). Accurate and appropriate code linkage is crucial to avoid claim denials.