tci ED Coding & Reimbursement Alert - 2006 Issue 12

READER QUESTION ~ Don't Focus on Location of Observation Service

Question: Our ED physician performed an observation on a patient who was not in the observation area. Notes also seem to indicate a separate evaluation and management (E/M) service, too. Can we still report an observation code, and can we code separately for the E/M service?Texas Subscriber Answer: Location is not the most important factor when deciding whether to use an observation code or not. The patient does not have to be in a designated observation unit to use the codes. Remember it this way: Observation is a status, not a location where the service occurs.Example: So...

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