tci General Surgery Coding Alert - 2001 Issue 4

Reader Question: Subsequent Observation Day Billed as Established Outpatient Visit

Question: My physician admitted a female patient for observation with left lower quadrant abdominal pain, suspicion of small bowel obstruction. The first day (Jan. 22) was billed as an initial observation day, and a discharge observation day was billed Jan. 24. According to the hospital, the patient was kept in observation all three days. How should we bill the second day (Jan. 23)?Colorado SubscriberAnswer: CPT does not contain subsequent day observation codes, probably because patients are rarely kept in observation very long.Because a patient in observation at a hospital is considered an outpatient, the appropriate established patient...

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