Yes, report a code for the hydrocephalus. The VP shunt does not cure the hydrocephalus but, rather, relieves pressure on the brain caused by the fluid accumulation. List first the code that describes the focus of the encounter.
Codes for congenital hydrocephalus include Q05.1–Q05.4 (spina bifida); Q03.8 and Q03.9 (other or unspecified congenital hydrocephalus); Q07.02 and Q07.03 (Arnold-Chiari syndrome with hydrocephalus or spina bifida and hydrocephalus); P37.1 (congenital hydrocephalus due to toxoplasmosis); and A50.49 (other late congenital neurosyphilis).
See codes in category G91 for acquired hydrocephalus (eg, post-traumatic). When hydrocephalus is a result of a neoplastic disease, list first a code for the neoplastic disease and also report G91.4 (hydrocephalus in diseases classified elsewhere).
When the focus of the service is the hydrocephalus or the underlying condition (eg, spina bifida), list first the appropriate code for the condition and then Z98.2 to indicate the presence of cerebrospinal fluid drainage device....