In section 170 - Billing Physician Dialysis services (codes 90935-90999) and Related Payment is says that "CPT codes 90935 and 90937 are used to report inpatient ESRD hemodialysis and outpatient hemodialysis performed on non-ESRD patients (e.g., patients in acute renal failure requiring a brief period of dialysis prior to recovery." In your example our office would only bill the observation E/M codes. I hope this helps.
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