tci Part B Insider - 2004 Issue 26

OBSERVATION CODING: When Billing Observation, Observe These Rules

Documentation can mean $90 extra for observation Billing observation coding can be confusing, especially in a busy Emergency Department where physicians are coming and going. But knowing the rules can make life much easier. Observation is only covered when a physician or other authorized personnel orders it, Universal City, TX-based physician Robert Kottman told the American College of Emergency Physicians at its May, 2004 meeting in San Francisco. The provider ordering the observation must be authorized to admit patients to the hospital or order tests. Observation service shouldn't last beyond one day, he added. You can't bill for observation...

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