Medicare Compliance & Reimbursement

Question: I have trouble figuring out how to charge for a patient that was in observation, then admitted to the hospital, and then discharged. How would I report: observation on 8/20/11, admitted 8/21/11, and discharged 8/22/11? Also, do list place of service as in-patient or observation? Answer: If an observation patient is admitted to inpatient status by the same practitioner on a subsequent day, you may bill as follows, according to Maggie M. Mac, CPC, CEMC, CHC, CMM, ICCE, director, Best Practices-Network Operations at Mount Sinai Hospital in New York City: Day 1 -- Bill the observation using an initial observation care code (99218-99220, Initial observation care, per day, for the evaluation and management of a patient ...). The place of service should be 22 (Outpatient hospital). Day 2 -- Bill the admission using an initial hospital care code (99221-99223, Initial hospital care, per day, for the evaluation and management of a [...]