Our facility - Coders, UR and management are having a debate on Observation and Verbal orders. Mainly in the scenario when MD initially writes an inpt order, then later verbally changes it to Observation. When the physician signs off on the verbal order, attesting to the fact he did give that order, can obs then be coded? Coders opinion is no, it's still a verbal order. Medicare guidelines state verbal orders are not acceptable unless it's a Code 44/UR Physician Review involvement. Please help with clarifying this issue for all of us involved.

Thanks - SueB