Outpatient Observation Services
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This policy governs reimbursement and billing rules for outpatient hospital observation services when Medicare coverage criteria are met, affecting providers submitting observation service claims to Care Continuum (Network Health).
Clarified that observation hours exceeding 72 will be denied and specified CARC 152 for observation billed on a single claim line in excess of 72 hours; providers must submit any overage on a separate claim line and Network Health may require clinical records.
Changed final-paragraph wording to indicate decision to admit should not be greater than 72 hours and claims submitted greater than 72 hours will be denied.
Coverage and Billing Criteria
Coverage and billing criteria
Observation services are covered when Medicare criteria are met and services are reasonable and necessary. Coverage and billing follow Medicare-based documentation, timing, and billing rules:
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