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AHA Coding Clinic® for HCPCS - 2001 Issue 3

Reporting observation services

Observation status services provided to outpatients occur most frequently after surgery or a visit to the emergency department. Patients are usually placed in “observation status” in order to receive further treatment and monitoring before a decision is made concerning their next placement (i.e., admission to the hospital or discharged home). Clinically, it typically doesn’t require more than 24 hours of observation to render a decision concerning a possible admission or discharge. According to Medicare justifying an observation stay of more than 24 to 48 hours is very rare. The observation services provided are not necessarily controlled...

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