decisionhealth Newsletters, Coder Pink Sheets - 2006 Issue 8 (August)
Shared service rule does not apply to consultations
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Article Overview
This article reviews Medicare clarification from CMS on shared and split services, focusing on consultation billing and how the policy affects evaluation and management services in office, clinic, and hospital settings. It is intended for coders, billers, compliance staff, and clinicians who need to understand the general scope of Medicare guidance, the settings where shared service concepts are discussed, and the documentation considerations surrounding physician and nonphysician provider participation.
Why This Topic Matters
Understanding this policy helps practices determine when shared service billing concepts apply and when they do not, especially in settings where physician and nonphysician provider collaboration is common. It is relevant for compliance, reimbursement accuracy, and documentation practices under Medicare guidance.
Article Sections
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Medicare clarification on shared service billing
Introduces the Medicare policy clarification and the broader question of how shared services relate to consultation billing. It references CMS guidance and the administrative context for the change.
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Prior guidance and industry interpretation
Summarizes earlier Medicare transmittal language and the way it contributed to confusion about shared billing for evaluation and management services. It includes comments from industry representatives about the policy history.
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Office consultations and incident-to versus shared visit concepts
Discusses how these billing concepts are viewed in office-based settings and contrasts the general frameworks used for follow-up care. It focuses on the setting rather than specific code selection.
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Hospital shared services and required criteria
Explains the hospital setting where shared services remain relevant and outlines the broad conditions discussed by the article. It addresses documentation and participation considerations for physician and nonphysician provider services.
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Documentation expectations for the physician portion
Describes the general point that the physician must provide and document a face-to-face component of the service. It also notes the article’s discussion of flexibility in the amount of physician involvement.
What You Will Learn
- How Medicare distinguishes consultations from other shared or split evaluation and management services.
- Which care settings the article discusses in relation to shared service billing.
- What general documentation and participation issues are raised for physician and nonphysician provider encounters.
- How CMS guidance and transmittals shaped the interpretation of shared visit policy.
Who Should Read This
- Medical coders
- Billing staff
- Compliance professionals
- Physicians
- Nonphysician providers
- Practice administrators
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