I can't find anything specific to observation care, but our medicare carrier has said that if the documentation for an initial inpatient visit (admit) doesn't meet requirements, then it is ok to bill a subsequent inpatient visit.
I am guessing the same logic would apply to the observation scenario.
They do say this should be a rare thing though....the doctor should be documenting properly for the admits
Hopefully someone will come through with something more concrete.
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