From AMA's Principle of CPT
"Only the physician admitting the patient to observation status may report the initial observation care code. For observation encounters provided by physicians other than the admitting physician, other E/M codes are reported, as appropriate.....Code 99217 is used to report observation care discharge day management. This code is used by the physician to report the final examination of the patient, discussion of the observation stay, instructions for continuing care, and preparation of discharge records......"
From this link
Contractors pay for initial observation care billed by only the physician who ordered hospital outpatient observation services and was responsible for the patient during his/her observation care. A physician who does not have inpatient admitting privileges but who is authorized to furnish hospital outpatient observation services may bill these codes
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