ICD-10-CM · Spine

M54.02

Panniculitis affecting the cervical region of the spine — inflammation of the subcutaneous fat tissue localized to the neck segment of the back, classified under dorsopathies.

Verified May 8, 2026 · 4 sources ↓

Status: Billable
Chapter: 13
Related CPT: 10
Region: Spine

Drawn from CDCICD10DataAAPCCMS

Documentation tips

What should appear in the chart to support M54.02.

Source · Editorial brief grounded in 4 cited references ↓

Specify 'cervical region' explicitly — do not document only 'neck pain' or 'posterior neck tenderness,' as that routes to cervicalgia (M54.2) rather than panniculitis.
Document clinical findings that establish panniculitis: subcutaneous induration, nodularity, localized tenderness, or warmth in the posterior cervical soft tissue.
Confirm and document that lupus panniculitis (L93.2), panniculitis NOS (M79.3), and relapsing Weber-Christian panniculitis (M35.6) have been ruled out or are not the primary etiology before assigning M54.02.
If imaging (MRI cervical spine) was ordered to characterize the soft-tissue inflammation, note the indication in the order to support medical necessity for the imaging CPT code.
Record the spinal segment involved by name ('cervical region') — not just 'upper back' or 'neck and back' — to distinguish M54.02 from adjacent codes M54.01, M54.03, or the multi-site code M54.09.

Related CPT procedures

Procedure codes commonly billed with M54.02. Linking the right diagnosis to the right procedure is what establishes medical necessity.

Source · CMS LCDs · AAOS specialty guidance · claims-pattern analysis

99203 $117.57

New patient office or outpatient visit requiring a medically appropriate history and/or examination with low-complexity medical decision-making, or 30–44 minutes of total provider time on the date of the encounter.

99204 $177.36

New patient office or outpatient visit requiring moderate medical decision making, or 45–59 minutes of total provider time on the date of the encounter.

99213 $95.19

Established patient office or outpatient visit requiring 20–29 minutes of total time or low-complexity medical decision-making.

99214 $135.61

Office visit for an established patient requiring moderate-complexity medical decision making (MDM), or 30–39 minutes of total provider time on the date of service.

72141 $190.72

MRI of the cervical spinal canal and its contents performed without contrast material.

72040 $39.75

Radiologic examination of the cervical spine capturing two or three views (e.g., AP, lateral, oblique).

72050 $55.11

Radiologic examination of the cervical spine capturing a minimum of four views, used to evaluate alignment, fractures, degeneration, or other structural pathology of the neck.

97110 $29.06

Therapeutic exercise billed per 15-minute unit, targeting strength, endurance, range of motion, or flexibility with direct one-on-one patient contact.

72142 View procedure details

97012 View procedure details

Common coding pitfalls

The recurring mistakes coders make with M54.02 and adjacent codes.

Source · Editorial brief grounded in CDC ICD-10-CM tabular guidance, AAOS coding references, and cited references ↓

Defaulting to cervicalgia (M54.2) when the documented diagnosis is panniculitis of the cervical region — these are distinct conditions with different codes; panniculitis is a soft-tissue inflammatory process, not a pain-site code.
Using parent code M54.0 (non-billable) instead of the specific site subcode M54.02 — M54.0 alone will be rejected; always carry the code to the full 5-character level.
Assigning M54.02 when documentation supports lupus panniculitis (L93.2) or relapsing Weber-Christian panniculitis (M35.6) — those are Type 1 Excludes conditions that cannot coexist with M54.02.
Confusing M54.01 (occipito-atlanto-axial region) with M54.02 (cervical region) — the occipito-atlanto-axial segment is the C0–C1–C2 junction, while the cervical region code applies to the broader C-spine segment below it.
Using M54.09 (multiple sites in spine) when documentation localizes the panniculitis to the cervical region only — reserve M54.09 for confirmed multi-site involvement.

Clinical context

Source · Editorial summary grounded in 4 cited references ↓

M54.02 identifies panniculitis confined to the cervical spinal region (C1–C7 segment of the back). Panniculitis in this context refers to inflammation of the subcutaneous adipose tissue overlying the cervical spine, presenting with localized tenderness, induration, and sometimes nodularity in the posterior neck. It is distinct from the occipito-atlanto-axial region (M54.01) and the cervicothoracic region (M54.03), so the provider's documentation must specify the affected spinal segment to land on this code rather than a neighbor.

Three important exclusions govern the M54.0 family: lupus panniculitis (L93.2), panniculitis NOS (M79.3), and relapsing Weber-Christian panniculitis (M35.6) are all excluded by Type 1 Excludes notes and cannot be coded with M54.02. If the underlying etiology is one of those three, assign the appropriate alternative — do not default to M54.02. When the provider documents cervical panniculitis without specifying one of those excluded entities, M54.02 is the correct billable code.

In orthopedic and spine practices, M54.02 most commonly supports evaluation and management encounters, conservative treatment visits, or diagnostic workup for posterior cervical soft-tissue complaints. It may appear alongside imaging CPT codes when MRI or CT of the cervical spine is ordered to characterize the extent of soft-tissue involvement. It is not an injury code and carries no 7th-character extension requirement.

Sibling codes

Other billable codes under M54.0 (laterality / anatomic variants).

M54.07

Panniculitis affecting regions of neck/bk, lumbosacr region

M54.08

Panniculitis aff regions of neck/bk, sacr/sacrocygl region

M54.06

Panniculitis affecting regions of neck/bk, lumbar region

M54.03

Panniculitis aff regions of neck/bk, cervicothor region

M54.09

Panniculitis aff regions, neck/bk, multiple sites in spine

M54.01

Panniculitis aff regions of neck/bk, occipt-atlan-ax region

M54.05

Panniculitis affecting regions of neck/bk, thoracolum region

M54.04

Panniculitis affecting regions of neck/bk, thoracic region

Frequently asked questions

Source · Generated from the editorial pipeline, verified against 4 cited references ↓

01Is M54.02 billable, or do I need to add a more specific code?

M54.02 is fully billable as a 5-character code for FY2026. No additional specificity digit is required — it is the terminal code in its subclassification for the cervical region.

02What is the difference between M54.02 and M54.2 (cervicalgia)?

M54.02 identifies panniculitis — inflammation of subcutaneous fat — localized to the cervical spinal region. M54.2 (cervicalgia) is a pain-site code for neck pain without a specified inflammatory soft-tissue etiology. Use M54.02 only when the provider documents panniculitis, not simply neck pain.

03Can I code M54.02 together with a lupus diagnosis code?

Not if the panniculitis is lupus-related. Lupus panniculitis (L93.2) is a Type 1 Excludes condition under M54.0, meaning it cannot be coded simultaneously with M54.02. Assign L93.2 instead when the etiology is lupus.

04Which code do I use if panniculitis spans multiple spinal regions, including cervical?

Use M54.09 (panniculitis affecting regions, neck and back, multiple sites in spine) when the provider documents involvement at more than one spinal level. Reserve M54.02 for panniculitis localized to the cervical region only.

05Does M54.02 require a 7th-character extension?

No. M-codes in the dorsopathy section do not use 7th-character extensions. The 7th-character A/D/S convention applies to injury codes (S-codes), not to M54.02.

06How do I distinguish M54.02 (cervical region) from M54.01 (occipito-atlanto-axial region)?

M54.01 covers the occipito-atlanto-axial junction (C0–C2), while M54.02 applies to the cervical region below that segment. The provider must document which anatomic zone is affected — do not assume cervical and occipito-atlanto-axial are interchangeable.

07What imaging CPT codes commonly pair with M54.02?

MRI cervical spine without contrast (72141) or with contrast (72142), and cervical spine X-ray two views (72040) or four or more views (72050), are the imaging codes most likely to be ordered alongside M54.02 to characterize soft-tissue involvement in the cervical region.

Sources & references

Editorial content was developed using the following public sources. Last verified May 8, 2026.

01CDC ICD-10-CM Tabular List 2026 (effective Oct 1, 2025)
02
icd10data.com
https://www.icd10data.com/ICD10CM/Codes/M00-M99/M50-M54/M54-/M54.02
03
aapc.com
https://www.aapc.com/codes/icd-10-codes/M54.02
04
cms.gov
https://www.cms.gov/files/document/fy-2025-icd-10-cm-coding-guidelines.pdf

Mira AI Scribe

The Mira AI Scribe captures the provider's documented spinal segment (cervical), physical exam findings consistent with panniculitis (subcutaneous induration, nodularity, localized tenderness), and any notation ruling out lupus or Weber-Christian panniculitis. This prevents assignment of the non-billable parent M54.0, avoids conflation with cervicalgia (M54.2), and blocks a Type 1 Excludes conflict with L93.2 or M35.6 at claim submission.

See how Mira captures M54.02 documentation