Observation always has a status of outpatient. These codes are used when the patient does not meet the criteria for inpatient status. The patient could be on an inpatient floor with the status of observation, they could also be in the ER or the hospital could have a floor designated as observation (depends on the hospital they could also be on a gurney in the hallway). No matter where in the hospital the patient is if the status is observatin they are outpatients.
Doreen Clark, CPC
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