Colorado Subscriber
Answer: CPT does not contain subsequent day observation codes, probably because patients are rarely kept in observation very long.
Because a patient in observation at a hospital is considered an outpatient, the appropriate established patient visit code (9921x) should be billed for the second day. As noted, the first day is billed 99218-99220 (initial observation care), depending on the level of E/M service provided, and 99217 (observation care discharge) is appropriate for the discharge from observation.