E/M Changes for 2023: Hospital Inpatient and Observation Care Services (January 2023)

January 2023 pages 20-23 E/M Changes for 2023: Hospital Inpatient and Observation Care Services Significant changes were made to the Evaluation and Management (E/M) Hospital Inpatient and Observation Care Services subsection of the Current Procedural Terminology (CPT®) 2023 code set. Other E/M subsection revisions were discussed in previous CPT Assistant issues. In this issue, the newly combined subsection of hospital inpatient and observation care services for both new and established patients will be discussed. Combining these services into one subsection has required the deletion of seven codes and revision of 11 existing codes. While this new subsection uses...

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Note:  The following article synopsis was NOT provided by the AMA. It was created by Find-A-Code/innoviHealth.

Article Overview

This article explains the 2023 CPT changes affecting hospital inpatient and observation evaluation and management services. It is relevant to coders, compliance staff, physicians, and other qualified health care professionals who report E/M services in inpatient, observation, and discharge settings. The discussion covers the consolidation of related subsections, revised code families, deleted observation-specific codes, updated total-time thresholds, prolonged services add-on reporting, and related guideline changes.

Why This Topic Matters

The 2023 revisions changed how several commonly reported hospital E/M services are organized and reported. Understanding the updated structure and timing framework helps reduce reporting confusion and supports consistent coding across inpatient, observation, and discharge encounters.

Article Sections

  1. January 2023 pages 20-23

    Introductory publication reference for the article.

What You Will Learn

  • How the hospital inpatient and observation E/M subsections were consolidated for 2023
  • Which parts of the hospital E/M structure were revised or removed
  • How updated time-based reporting concepts apply to the affected service families
  • What guideline updates were added for initial and subsequent services
  • How the revised discharge service structure is described at a high level

Who Should Read This

  • Medical coders
  • Coding auditors
  • Compliance staff
  • Physicians
  • Other qualified health care professionals
  • Revenue cycle teams

Codes Discussed

Code Ranges Discussed


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