Urology Coding Alert

Don't confuse nursing facilities and skilled nursing facilities Every claim requires a place-of-service (POS) code, but if you don't choose the correct one, you not only risk losing money but also risk denial of your entire claim.

Choosing the correct POS code is important to every claim and makes a difference in the amount you're reimbursed and whether your claim is paid or denied, says Annette Grady, CPC, CPC-H, CPC-P, CCS-P, TCN senior orthopedic coder and compliance auditor and an executive officer of the AAPC National Advisory Board.

Read on: Steer clear of disaster with our experts' advice on your most pressing -- and confusing -- POS issues. Decide Between Hospital and Office If your office is part of a hospital facility, determining which POS code applies may vary "depending on the financial setup between the physician and hospital," Grady says. "CMS does have some other rules for provider-based billing, in which both the physician and hospital bill for the E/M code." The hospital bills a facility portion, and the physician bills a professional portion. In the CMS database, many codes are split with a facility value and nonfacility value.

Helpful: If your office is on hospital grounds, don't report POS 11 (Office) or POS 22 (Outpatient hospital), until you ask yourself the following question: Is the provider paying fair-market rent for the facility (office space)? If so, then consider the space an office and select POS 11.

If you aren't paying fair-market rent, then choose POS 22. Reason: When you aren't paying for use of the facility, you shouldn't receive any extra reimbursement for it. You only earn the higher nonfacility fee (called for by POS 11) if you're paying rent and incurring the other costs of running a practice, namely paying for staff, utilities and supplies.

Payment differences: "POS can change your reimbursement," says Pamela Biffle, CPC, CCS-P, ACS-DE, a PMCC instructor and director of operations/senior instructor for CRN Institute in Salt Lake City. "For example, office versus hospital -- the hospital fees will be lower. Also, there are some services that are only reimbursed when performed in certain POS." Know the Difference Between Nursing Facilities If you are billing Part B for services you provide to patients in nursing facilities, there's a lot of room for error when you have to decide among POS 31 (Skilled nursing facility), 32 (Nursing facility), and 33 (Custodial care facility).

Best bet: Check with the facility you're coding for. "The facilities should be able to provide you with their classifications," Biffle says. "It doesn't really matter what they do if they are not classified for that level of service. Some facilities have different units with the different designations."

A facility can have both skilled nursing and non-skilled nursing beds simultaneously.

• [...]