Question: We have a patient that presented to the ED at 10 pm on day one and after examination and treatment began, the decision was made to admit that patient to observation status after midnight. Can we report and ED E/M service on day one and an observation service on day two for the same provider? Washington Subscriber Answer: CPT® states: When "observation status" is initiated in the course of an encounter in another site of service (e.g., hospital emergency department, office, nursing facility) all evaluation and management services provided by the supervising physician or other qualified health care professional in conjunction with initiating 'observation status' are considered part of the initial observation care when performed on the same date." This would allow reporting a different E/M on the second calendar day of treatment. In your scenario. The decision to admit to observation status occurs on a different calendar date. Keep in mind the necessity for a second comprehensive history and physical exam for the observation service.