Billing and Coding Guidelines - CMS

Billing and Coding Guidelines Contractor Name Wisconsin Physicians Service Insurance Corporation Contractor Number 05101, 05201, 05301, 05401, 05102, 05202, 05302, 05402, 52280 Title Billing and Coding Guidelines for Acute Inpatient Services versus Observation (Outpatient) Services (HOSP-001) Original Determination Effective Date Original Determination Ending Date Revision Effective Date Excerpt from CMS internet only Manual (IOM): Publication 100-2, Chapter 6, A. Outpatient Observation Services Defined Observation care is a well-defined set of specific, clinically appropriate services, which include ongoing short term treatment, assessment, and reassessment before a decision can be made regarding whether patients will require further treatment as hospital inpatients or if they are able to be discharged from the hospital. Observation status is commonly assigned to patients who present to the emergency department and who then require a significant period of treatment or monitoring before a decision is made concerning their admission or discharge.

Medicare Claims Processing Manual, Chapter 4, §290, at for billing and payment instructions for outpatient observation services. B. Coverage of Outpatient Observation Services . When a physician orders that a patient be placed under observation, the patient’s status is that of an outpatient.

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  Coding, Processing, Claim, Claims processing

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