Observation, physician supervision requirements add additional complications when coding condition code 44
Briefings on APCs, April 1, 2010
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Observation services
In May 2009, CMS rewrote most of the observation language in the Medicare Claims Processing Manual and clarified that observation is a service, not a status. Patients are either inpatients or outpatients, and patients receiving observation services are outpatients. CMS removed all references to admitting patients to observation.
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