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AHA Coding Clinic® for HCPCS - 2005 Issue 4
CMS simplifies coding for observation services
According to the November 2005 Outpatient Prospective Payment System Final Rule, changes will be made to the coding of observation services for CY 2006. The changes were made in response to comments received by the Centers for Medicare & Medicaid Services (CMS) regarding the continuing administrative burden on hospitals when attempting to differentiate between packaged and separately payable observation services. While CMS did not make payment policy changes for observation services, coding has been simplified.
CMS has received incomplete and unreliable data as a result of inconsistent hospital reporting. Some hospitals reported observation services per day and others reported...
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