"If the patient is admitted to inpatient status from hospital outpatient observation care subsequent to the date of initiation of observation services, the physician must bill an
initial hospital visit for the services provided on that date. The physician may not bill the hospital observation discharge management code (code 99217) or an outpatient/office visit for the care provided while the patient received hospital outpatient observation services on the date of admission to inpatient status."
I looked at Sept 2010 CPT Assistant and the CMS claims processing manual. This was the best excert I was able to find. I could not find where I have heard they say if for initial inpatient care does not meet a detailed history and detailed exam then 99231-99232 could be reported to be in accordance with the criteria to meet the given level even though it is an initial inpatient care.
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