tci ED Coding & Reimbursement Alert - 2021 Issue Q4

Reader Questions: Observe These Observation Diagnosis Rules

Question: Should we report the observation diagnosis codes (Z03-Z05) as primary diagnoses or secondary? Or does it not matter? Illinois Subscriber Answer: Although in the past, you needed to report the observation diagnosis codes as principal diagnoses, that is no longer the case. The ICD-10-CM 2021 Guidelines included information about the following three observation category codes: Z03 (Encounter for medical observation for suspected diseases and conditions ruled out) Z04 (Encounter for examination and observation for other reasons) Z05 (Encounter for observation and evaluation of newborn for suspected diseases and conditions ruled out) In previous versions of the ICD-10-CM guidelines...

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