Wiki Observation Coding - I have a question related

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I have a question related to Observation coding. A pediatric patient was seen in OBS Day 1 for viral croup. Patient remained in OBS and on second day condition became much worse requiring transfer and admission to a PICU facility. The Day 2 physician billed for a discharge.

Based on the amount of time spent and condition of the patient and the requirement for transfer would it be appropriate to bill a subsequent OBS code on the second day versus a discharge since the patients condition worsened and required another level of care outside of our facility.

Input would be very helpful. Thank you.:confused:
 
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