• If this is your first visit, be sure to check out the FAQ & read the forum rules. To view all forums, post or create a new thread, you must be an AAPC Member. If you are a member and have already registered for member area and forum access, you can log in by clicking here. If you've forgotten your username or password use our password reminder tool. To start viewing messages, select the forum that you want to visit from the selection below..
  • Important Note: We will be performing a scheduled maintenance on 1st November 2020. The site will be offline from 7:30PM (MT) till midnight. We apologize for any inconvenience this may cause.

Observation to IP Billing


Tulsa, OK
Best answers
I am confused on this topic as I have seen conflicting information

Pt presents to ER. Initial H&P is done and pt is placed in Observation. (I bill for Phys A who did the initial observation.) Pt is in observation for 24 hours. On day 2, 3, 4 whatever the patient is admitted as IP. At this point we charge an initial IP visit for Phys A rather than an Initial observation visit. Is this correct?

It was always my understanding that we wait until the patient is either DC from observation or admitted before charging for Phys A services. If the patient is DC from observation on day 2 (or day 1 or day 3...doesn't really matter) then we obviously charge the initial observation for Phys A.

Now I am hearing that regardless of the fact that the patient is admitted on day 2, 2, 4 or whatever, we should still be charging an initial observation visit.