PC/TC indicator 1: both components, split by modifier.

What the field says

The Professional Component (PC)/Technical Component (TC) Indicator sits at position 34 of the Physician Fee Schedule payment policy indicator file (Chapter 23, section 50.6). It says whether a code can be split into a physician part (modifier 26) and a staff-and-equipment part (modifier TC). A blank modifier on a diagnostic test denotes the global service.

The ten values

• 0 physician service: no split; modifiers 26 and TC cannot be used.
• 1 diagnostic test or radiology service: usually both components; 26 and TC can be used.
• 2 professional component only code; 3 technical component only code; 4 global test only code. For all three, 26 and TC cannot be used because the code already is one part, or the whole.
• 5 incident-to: covered when furnished by auxiliary personnel under direct supervision; not paid for hospital inpatients or hospital outpatient department patients.
• 6 laboratory physician interpretation: separate payment for an interpretation may be made; TC cannot be used.
• 7 physical therapy service: not paid when furnished to hospital patients by an independently practicing therapist.
• 8 physician interpretation: applies to a single clinical laboratory code for an abnormal smear on a hospital inpatient.
• 9 the PC/TC concept does not apply.

What each component is worth

For indicator 1, the total relative value units (RVUs) for a code with modifier 26 include physician work, practice expense and malpractice expense. With modifier TC they include practice expense and malpractice expense only. With no modifier the total is the sum of the two. For indicator 4, the global-only total equals the PC-only plus the TC-only codes combined (Chapter 23, section 50.6).

When to use 26 versus TC

Modifier 26 identifies the professional component and TC the technical component; no modifier on a diagnostic test is the global service. The indicator decides whether either modifier is even allowed for the code, so check it before assigning one. Other billing rules, such as when the two parts may be billed together, sit in CMS chapter 13 and are not covered here.

Worked example

A diagnostic test code carries indicator 1. Group A owns the equipment and Group B reads the result. Group A reports the code with TC and Group B reports it with 26; each is paid its component. If instead the code is a PC-only code (indicator 2), Group B bills it with no modifier, because adding 26 is not permitted.

Limits

CMS notes that in the payment policy file the PC/TC indicator is used in processing Method II critical access hospital professional services. The indicator describes how a code is priced, not whether a service is covered.

FAQ

What does PC/TC indicator 1 mean?

The code is a diagnostic test or radiology service that generally has both a professional and a technical component, and modifiers 26 and TC can be used with it.

Can modifier 26 be used with indicator 2?

No. Indicator 2 marks a professional-component-only code, so modifiers 26 and TC cannot be used.

What do RVUs include for the TC of an indicator 1 code?

Practice expense and malpractice expense only. The 26 modifier includes physician work, practice expense and malpractice expense.

What is PC/TC indicator 9?

The concept of a professional or technical component does not apply to the code.

What does a blank modifier mean on a diagnostic test?

It denotes the global service, both components together.

Sources

Retrieved 2026-11-02 from the CMS documents below. Indicator meanings are paraphrased from the CMS definitions; no AMA CPT descriptors are reproduced. CMS revises the fee schedule and its manuals, so check the current text.

• CMS: Medicare Claims Processing Manual, Chapter 23, Fee Schedule Administration and Coding Requirements (Rev. 13701, issued 06-16-26): section 50.6, Professional Component (PC)/Technical Component (TC) Indicator, values 0-9 (retrieved 2026-11-02).