Open tenotomy of the shoulder involving multiple tendons divided through a single incision.
Verified May 8, 2026 · 8 sources ↓
- Medicare
- $674.03
- Total RVUs
- 20.18
- Global, days
- 90
- Region
- Shoulder
Documentation requirements
What must appear in the operative or office note to support the claim.
Source · Editorial brief grounded in 8 cited references ↓
- Identify each tendon divided by name (e.g., subscapularis, biceps long head, supraspinatus) — notes that say 'multiple tendons' without naming them are audit targets.
- State the surgical approach and confirm all tendons were accessed through the same single incision to support the 23406 descriptor versus separate incisions.
- Document the clinical indication linking the diagnosis (e.g., tendonitis, frozen shoulder, rotator cuff pathology) to the decision to release multiple tendons.
- Record anesthesia type, patient positioning, intraoperative findings, and the closure technique used.
- If performed with additional shoulder procedures on the same date, document that each service was distinct and medically necessary to support modifier 59 or XS use.
- For modifier 22 claims, include a narrative explaining the increased complexity — number of tendons, adhesions, anatomic distortion, or operative time significantly beyond typical.
Applicable modifiers
Modifiers commonly billed with this code.
Source · AMA CPT modifier descriptors · CMS NCCI Policy Manual
What this code covers
Source · Editorial summary grounded in 8 cited references ↓
CPT 23406 describes an open surgical tenotomy of the shoulder in which the surgeon cuts or releases multiple tendons through a single incision. This distinguishes it from 23405, which covers a single-tendon tenotomy through the same approach. The procedure targets conditions such as tendonitis, rotator cuff pathology, or frozen shoulder where releasing multiple tendon structures is necessary to restore function and reduce pain.
The surgeon makes an incision over the shoulder, identifies the affected tendons, and divides each one under direct visualization before closing the wound. Regional or general anesthesia is standard. Because multiple tendons are addressed through a single surgical access point, the code is not reported multiple times — one unit covers all tendons treated via that incision.
CPT 23406 carries a 90-day global period. All routine follow-up care, including post-op visits, dressing changes, and stitch removal, is included through day 90. Services unrelated to the shoulder tenotomy billed within that window require modifier 24 (E/M) or modifier 25 (same-day E/M before the procedure). The code is performed in both HOPD and ASC settings, with a meaningful payment differential between the two — see the Site of Service comparison on this page.
RVU & reimbursement
Component RVUs and Medicare national rate. Actual payment varies by GPCI locality.
Source · CMS Physician Fee Schedule, RVU26A · January 2026
| Work RVU | 10.73 |
| Practice expense RVU | 7.97 |
| Malpractice RVU | 1.48 |
| Total RVU | 20.18 |
| Medicare national rate | $674.03 |
| Global period | 90 days |
Payment by site of service
Medicare pays different rates by setting. HOPD typically pays substantially more than ASC for the same procedure.
Source · CMS OPPS Addendum B·ASC HCPCS payment rates·2026
| Setting | Medicare rate (national) |
|---|---|
Office (PFS non-facility) Procedure performed in physician's office | $674.03 |
HOPD (APC 5114) Hospital outpatient department | $7,413.38 |
ASC (PI A2) Ambulatory surgical center (freestanding) | $3,695.53 |
Common denial reasons
The recurring reasons claims for CPT 23406 get rejected.
Source · Editorial brief grounded in CMS NCCI edits, AAOS coding appeals, and cited references ↓
- Operative note documents only a single tendon divided — payers downcode to 23405 without supporting language naming multiple tendons.
- Bundling edits when billed same-day with arthroscopic shoulder codes without a modifier establishing a distinct open procedure.
- Missing or vague diagnosis linkage — payer denies for lack of medical necessity when the clinical indication for multi-tendon release is not explicitly stated.
- Unbundling flag when 23406 is billed with units greater than 1 — the code is one unit regardless of how many tendons were released through the single incision.
- Global period violations — follow-up E/M visits billed without modifier 24 during the 90-day post-op window are denied as included services.
Frequently asked questions
Source · Generated from the editorial pipeline, verified against 8 cited references ↓
01What separates 23406 from 23405?
02Can 23406 be billed with arthroscopic shoulder codes on the same day?
03Is 23406 bilateral? How do I bill if both shoulders are addressed?
04How does the 90-day global period affect billing?
05Can a physical medicine and rehabilitation physician bill 23406?
06When is modifier 22 appropriate for 23406?
Sources & references
Editorial content was developed using the following public sources. Last verified May 8, 2026.
- 01CMS Physician Fee Schedule 2026
- 02aapc.comhttps://www.aapc.com/codes/cpt-codes/23406
- 03mdclarity.comhttps://www.mdclarity.com/cpt-code/23406
- 04genhealth.aihttps://genhealth.ai/code/cpt4/23406-tenotomy-shoulder-area-multiple-tendons-through-same-incision
- 05tdi.texas.govhttps://www.tdi.texas.gov/medcases/medfee18/m4182028.pdf
- 06cms.govhttps://www.cms.gov/files/document/02-chapter2-ncci-medicare-policy-manual-2025finalcleanpdf.pdf
- 07aapc.comhttps://www.aapc.com/blog/36249-overcome-quirky-ncci-bundling-rules-for-shoulder-arthroscopy/
- 08payerprice.comhttps://payerprice.com/rates/23406-CPT-fee-schedule
Mira AI Scribe
Mira's AI scribe captures the name of each tendon divided, confirms all were accessed through a single incision, and records the surgeon's stated indication for multi-tendon release. This prevents the most common downcode scenario — notes that reference 'multiple tendons' generically without specifying which structures were cut — and provides the tendon-level detail auditors require to support 23406 over 23405.
See how Mira captures CPT 23406 documentation