tci General Surgery Coding Alert - 2007 Issue 7

You Be the Coder: Where Does 'Observation' Take Place?

Question: Our surgeon performed an observation service for a patient who was not in the observation area of the hospital. Does this mean I shouldn't report an observation code?Texas SubscriberAnswer: Location is not the most important factor when deciding whether to use an observation E/M code (99234-99236). The patient does not have to be in a designated observation unit for you to report these codes. In a nutshell: Observation is a status, not a location where the service occurs. ...

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