If the hospitals are in one system, and the physician (or a partner in the same practice, same specialty) is still going to be caring for the patient at hospital # 2, then I agree with your doctor. Just bill a subsequent hospital visit.
But if the patient will be cared for at a completely unrelated hospital by a physician from a different practice or specialty, then I would code a discharge. The physician who receives the patient at the new hospital will code an admission.
Hope that helps.
F Tessa Bartels, CPC, CEMC
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