Pulmonology Coding Alert

Question:As follow-up to the previous question, our office also gets a lot of denials for E/M observation services because of incorrect POS coding. What is the appropriate POS code to use for patients placed on "observation status"?New York SubscriberAnswer:The answer can be tricky. First, you have to examine the definition of "observation status." A patient may end up spending 12 hours or more in the ER just waiting to receive full treatment, but that doesn't mean he is being observed. The documentation should confirm that a physician did in fact place the patient in observation.When reporting an observation service, you would use a code in the 99217-99220, 99234-99236 or 99224-99226 set. The place of service codes work out like this:22 (Outpatient hospital) is appropriate when a patient comes in through the ER, the physician places the patient on observation status. For instance, a patient complains of chest tightness and shortness [...]