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My provider saw a patient while in obs status and during that time patient had to be admitted to the hospital for surgery but the inpatient order was not written until later that day. Should the surgery for the physician be billed as inpatient or outpatient? The surgery was not an inpatient only surgery. We have been receiving denials from Medicare stating that the POS was incorrect because the patient was admitted to the hospital but my provider is stating to appeal these because we have to bill the surgery for the status at the time of the order but I don't think this is correct, does anyone know of any Medicare regulations that address this issue or where I can find documentation to suport billing the surgery as inpatient even though at the time of the surgery the patient was in an observation status.