Certified Healthcare Technology Specialist (CHTS) Process Workflow & Information Management Redesign Practice Exam

What is the purpose of NDC codes in healthcare?

1. A code set for reporting retail pharmacy transactions

2. A standard for lab test interpretations

3. A database for clinical trial results

4. A coding system for surgical procedures

The correct answer is: A code set for reporting retail pharmacy transactions

The National Drug Code (NDC) serves a critical role in healthcare as it provides a unique identifier for medications. Specifically, NDC codes are designed to facilitate the reporting and tracking of drug-related transactions, particularly within retail pharmacies. Each NDC code consists of a series of digits that conveys specific information about the drug, including the manufacturer, product, and package size. This standardization helps to improve the accuracy of medication dispensing and inventory management and is essential for effective communication throughout the healthcare system. In this context, option A encapsulates the primary purpose of NDC codes, highlighting their importance in the realm of pharmacy operations. The use of NDC codes helps healthcare professionals ensure that patients receive the correct medications and can aid in managing drug recalls and reimbursements as well. The other options, while important in their own right, do not pertain directly to the function of NDC codes. For example, lab test interpretations and surgical procedures rely on different coding systems and standards, such as LOINC or CPT codes, respectively. Similarly, a database for clinical trial results serves a separate purpose focused on research rather than transaction reporting in pharmacies. Understanding the specific use of NDC codes helps clarify their significance within the broader context of healthcare information management.