Revenue Code For Observation Stay

The observation stays that resulted in admission and are included in the inpatient claim are identified with revenue center code 0762 in the inpatient claim file.

Revenue code for observation stay. This code should not be reported if the patient was placed in observation and discharged on the same day. If the hospital is not subject to ipps observation stay charges are only rolled into the inpatient charges if the observation occurred within one day of admission. Cpt code 99217 covers services on the date of observation discharge including a final exam discussion of the observation stay follow up instructions and documentation. Claims will be returned if the code is not provided on in relation to inpatient admissions.

Revenue code 762 for observation requires a cpt or hcpcs code on the line. A consulting company instructed our facility that we cannot bill observation charges to medicare with revenue code 762 even when we don t expect additional payment. We have been charging an observation bed charge under revenue code 762 with cpt 99218. Inpatient and outpatient revenue centers were queried for observation revenue center orc codes identified by resdac 22 including 0760 treatment or observation room general classification 0761 treatment or observation room treatment room 0762 treatment or observation room observation room and 0769 treatment or observation room other occurring within 30 days of an inpatient stay.