Review the newish codes and make sure you’re doing things correctly. Coders responsible for documenting evaluation and management (E/M) services for hospital admissions, observation care, and same-day observation and discharges should have fully incorporated all the revisions that have been released since 2021. As 2024 starts, check in on how you’re using medical decision making (MDM) elements and navigating relevant time parameters — and make sure you’re applying all of the guidelines correctly. Here are five things to keep in mind. 1. Don’t Report Initial Services Without Checking These Definitions At the end of 2022, CPT® deleted the initial, subsequent, and discharge observation service codes (99218-99220, 99224-99226, and 99217 respectively), and rolled observation services into the new initial and subsequent inpatient care service codes. The initial service codes are as follows: Before using one of these codes, you should take into account the following definitions: Per day means the “total time on the date of the encounter … by calendar date” according to CPT®. A visit spanning two calendar dates is “a single service and is reported on one calendar date,” even if the services are continuous services beginning on one calendar date and extending through midnight into the next. In the 2024 CPT® guidelines, the American Medical Association (AMA) clarifies that “per day” means you should report a single code when a patient has multiple visits on the same calendar date and in the same setting. The guideline goes on to state, “When using MDM for code level selection, use the aggregated MDM over the course of the calendar date. When using time for code level selection, sum the time over the course of the day using the guidelines for reporting time.” Observation means “ongoing short-term treatment, assessment, and reassessment, furnished while a decision is being made regarding whether a patient will require further treatment as a hospital inpatient or if they are able to be discharged from the observation care.” It generally does not exceed 24 hours, and “only in rare and exceptional cases do outpatient observation services span more than 48 hours” according to an observation care fact sheet from Medicare Administrative Contractor (MAC) Novitas Solutions (https://www.novitas-solutions.com/webcenter/portal/MedicareJL/pagebyid?contentId=00159301). Place of service (POS) “should identify the patient’s location,” according to the Novitas fact sheet. As the Centers for Medicare & Medicaid Services (CMS) regards observation services as outpatient services, this means using POS code 22 (On campus — outpatient hospital) for Medicare claims that are solely for outpatient services. If the observation services turn into an inpatient admission, you should use POS code 21 (Inpatient hospital). 2. Report Subsequent Services in These Situations Once a patient has “received any professional services from the physician or other qualified health care professional [QHP] or another physician or other qualified health care professional of the exact same specialty and subspecialty who belongs to the same group practice, during the inpatient, observation … admission and stay,” per CPT® guidelines, you can assign one of the following codes for subsequent inpatient care per day: CPT® also considers “advanced practice nurses [APNs] and physician assistants [PAs]” as “working in the exact same specialty and subspecialty” when they work together with a physician, the guidelines expound. 3. Look to Same-Day Admission and Discharge Codes To report inpatient care services for a patient admitted then discharged on the same day, you know to use one of the following: However, the trick to assigning one of these codes for Medicare, or those following CMS rules, lies in documenting how long the patient stayed in the facility. “To bill 99234-99236, you must have a statement that shows the stay for observation care or inpatient hospital care was greater than eight hours but less than 24 hours. If the admission is greater than 24 hours, then you would use 99221-99223 for the initial day of inpatient hospital care,” advises Jessica Miller, CPC, CPC-P, CGIC, manager of professional coding for Ciox Health in Alpharetta, Georgia.
4. Document and Report Discharges You’ll document discharge services administered by your provider or QHP with one of the following time-based codes: But you’ll need to make sure you follow these CPT® guidelines before you do: Document all patient services provided on discharge day, including the provider’s “final examination of the patient, discussion of the hospital stay, instructions for continuing care to all relevant caregivers, and preparation of discharge records, prescriptions, and referral forms.” Do not report in conjunction with initial hospital inpatient or observation care service codes 99221, 99222, 99223. Instead, you’ll use 99234, 99235, or 99236 as appropriate for discharges on the same day as admission. Report only those services provided by the physician or QHP responsible for discharge. If other providers render services on the date of discharge, they should report the appropriate code from the subsequent category. 5. Count Time Correctly With This Tip Last, if you document any of these codes by time, remember this advice: “Time is often underreported for inpatient E/M services. Providers don’t always remember to document time that is spent on the unit/floor that is outside the face-to-face time with the patient and family,” notes JoAnne M. Wolf, RHIT, CPC, CEMC, coding manager at Children’s Health Network in Minneapolis.