decisionhealth Newsletters, Part B News - 2023 Issue 3 (March)
New math for prolonged hospital visits could equal revenue surge for practices
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Article Overview
This article reviews a Medicare change to the threshold timing used for prolonged inpatient and observation services and explains why the correction may affect claim review and reimbursement for hospital E/M visits billed by time. It is aimed at coding, billing, and revenue cycle staff who work with inpatient and observation claims and need to stay current on CMS updates, Medicare guidance, and payer-specific prolonged service reporting. The piece also highlights the need to track related code sets and follow updated guidance for retrospective claim handling.
Why This Topic Matters
The correction may change whether certain hospital visit claims qualify for prolonged service reporting under Medicare, which can affect reimbursement and claim rebilling workflows. Practices that bill time-based inpatient and observation E/M services need to understand the update to avoid missing potential payment and to align Medicare claims with current guidance.
Article Sections
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Coding
Introduces the Medicare update and frames its impact on inpatient and observation E/M claims billed by time. It also points readers to related threshold guidance and claim review considerations.
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Stick to the new G codes with the new times
Discusses the updated prolonged service timing framework and the need to track the relevant code sets for Medicare and other payers. It emphasizes that different payer policies may apply and that staff should stay current with the revised thresholds.
What You Will Learn
- How a Medicare correction affects prolonged service timing for hospital-based E/M claims
- Why updated threshold guidance matters for claims review and reimbursement
- Which broad code sets are involved in inpatient and observation prolonged service reporting
- What administrative follow-up may be needed after a retroactive CMS update
Who Should Read This
- Medical coders
- Billing staff
- Revenue cycle teams
- Compliance teams
- HIM professionals
- Practice administrators
Codes Discussed
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