Question Using Medicare Outpatient Claims manual references to deny Inpatient charges?

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Good day all!
Insurances sometimes reference Medicare Outpatient Claims manual sections as a justification for denying charges on an Inpatient claim.
Before I mention the discrepancy in my Appeal letter, please confirm my understanding that Medicare Outpatient instructions pertain to Outpatient claims.
In this case, it's Medicare Claims Processing Manual Pub. 100-4, chapter 4, section 230.2 which is part of section 230: "This section provides billing guidance and payment instructions for hospitals when providing drugs and drug administration services in the hospital outpatient department.”
Thanks much!
Felicia Ziomek