Tip: Count observation hours correctly
APCs Weekly Monitor, August 5, 2011
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Report observation services with HCPCS code G0378 (observation services, per hour) under revenue code 0762 (observation services). Round the amount of time to the nearest hour.
For example, if a patient was in observation from 1 p.m. to 3:45 p.m., report G0378x3. If a patient was in observation from 1 p.m. to 3:20 p.m., report G0378x2. Bill all hours on the same line for a single date of service using the date observation services were started.
Observation time begins when a physician orders observation services and ends when all medically necessary services related to the observation are complete. Observation can end before a patient leaves a facility if the patient is waiting for transportation home. Time a patient spends waiting should not be reported as observation time.
The tip is adapted from “Correctly count observation time for outpatients” in the June issue of Briefings on APCs.
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