Watch POS for Minor Surgery

Many offices use place of service (POS) code 11 Office incorrectly for minor surgeries at an ambulatory surgical center (ASC) or in the outpatient department of a hospital. You should apply POS 11 only for those services provided in the physician office.

The Office of the Inspector General (OIG) reviewed a sample of outpatient surgery claims filed in 2009 and found that 83 percent of those billed with POS 11 were performed in an ASC or hospital, and subsequently were overpaid. The OIG recommends that Medicare educate providers on proper use of POS codes, but also advises that Medicare audit all POS 11 services reported in 2009. The OIG estimates that approximately $9.5 million can be reclaimed from providers.

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