You Be the Coder ~ Coding Observation in Non-Observation Unit
Published on Tue Jul 24, 2007
Question: Our physician performed an observation service on a patient who was not in the hospital's observation area. Can we still report an observation code for the visit?
Texas Subscriber
Answer: Location is not the most important factor when deciding whether to use an observation E/M code. The patient does not have to be in a designated observation unit for you to use the codes.
When you code observation services, select from 99218-99220 (Initial observation care, per day, for the evaluation and management of a patient -) for new or established patients.
Remember it this way: Observation is a status, not a location where the service occurs.