DEFINITIONS
Observation Care: Evaluation and management services provided to patients designated as "observation status" in a
hospital. This refers to the initiation of observation status, supervision of the care plan for observation and
performance of periodic reassessments.
Same Specialty Physician or other Qualified Health Care Professional: Physicians and/or other qualified health
care professionals of the same group and same specialty reporting the same Federal Tax Identification number.
The following list(s) of procedure and/or diagnosis codes is provided for reference purposes only and may not be all
inclusive. Listing of a code in this policy does not imply that the service described by the code is a covered or noncovered
health service. Benefit coverage for health services is determined by the member specific benefit plan
document and applicable laws that may require coverage for a specific service. The inclusion of a code does not imply
any right to reimbursement or guarantee claim payment. Other Policies may apply.
CPT Code Description
99217
Observation care discharge day management (This code is to be utilized to report all
services provided to a patient on discharge from “observation status” if the discharge
is on other than the initial date of “observation status”. To report services to a
patient designated as “observation status” or “inpatient status” and discharged on
the same date, use the codes for Observation or Inpatient Care Services [including
Admission and Discharge Services, 99234-99236 as appropriate.])
99218
Initial observation care, per day, for the evaluation and management of a patient
which requires these 3 key components: A detailed or comprehensive history; A
detailed or comprehensive examination; and Medical decision making that is
straightforward or of low complexity. Counseling and/or coordination of care with
other physicians, other qualified healthcare professionals, or agencies are provided
consistent with the nature of the problem(s) and the patient's and/or family's needs.
Usually, the problem(s) requiring admission to "observation status" are of low
severity. Typically 30 minutes are spent at the bedside and on the patient's hospital
floor or unit.
99219
Initial observation care, per day, for the evaluation and management of a patient,
which requires these 3 key components: A comprehensive history; A comprehensive
examination; and Medical decision making of moderate complexity. Counseling
and/or coordination of care with other physicians, other qualified healthcare
professionals, or agencies are provided consistent with the nature of the problem(s)
and the patient's and/or family's needs. Usually, the problem(s) requiring admission
to "observation status" are of moderate severity. Typically 50 minutes are spent at
the bedside and on the patient's hospital floor or unit.
99220
Initial observation care, per day, for the evaluation and management of a patient,
which requires these 3 key components: A comprehensive history; A comprehensive
examination; and Medical decision making of high complexity. Counseling and/or
coordination of care with other physicians, other qualified healthcare professionals, or
agencies are provided consistent with the nature of the problem(s) and the patient's
and/or family's needs. Usually, the problem(s) requiring admission to "observation
status" are of high severity. Typically 70 minutes are spent at the bedside and on the
patient's hospital floor or unit.
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