Question: Codify Member Answer: On the other hand, those entities (practices, etc.) that are wholly owned or operated by a hospital and that provide any diagnostic or related non-diagnostic services to a patient who is admitted to that hospital within three days must append modifier PD to the codes for those services. They must apply the modifier to relevant services as of July 1, 2012. Practices self-designate during Medicare enrollment whether they're owned or operated as a hospital. The hospital is responsible for alerting the practices they own or operate if the patient is admitted. When practices append PD to a code that doesn't have both professional and technical components, Medicare will pay for the service based on the facility rate (rather than the non-facility rate). If a code has both professional and technical components, modifier PD will trigger Medicare to pay the practice for only the professional component. The technical component will be considered a hospital cost. Resource: