Site-of-service criteria for elective surgical and diagnostic procedures in adults
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Defines medical necessity determination for the site of service (ASC, outpatient hospital, inpatient) for specified elective surgical procedures in adults and lists procedures/CPT codes subject to site-of-service review. Affects providers performing these elective surgeries and Premera Bluecross members receiving them.
Added shoulder arthroscopy to ASC for Select Surgical Procedures as medically necessary when criteria are met and added CPT codes: 23700, 29805-29807, 29819-29828, effective 02/06/26.
Title changed from 'Site of Service Ambulatory Service Center Select Surgical Procedures in Adults' to 'Site of Service Ambulatory Service Center Select Surgical or Diagnostic Procedures in Adults' and added procedures requiring review (including 2.01.533 UGI Endoscopy).
Added Hand Surgery section to include carpal tunnel release surgical techniques and CPT codes 29848 and 64721.
Site-of-Service Coverage Criteria
Site-of-Service Medical Necessity Criteria
Covered when ALL of the following apply:
ASC is preferred when criteria for hospital-level care are not present.
Conditions allowing hospital outpatient site
- ASC access exceptions: There is no qualifying ASC within 30 miles that can provide the necessary care OR no geographically accessible ASC that has the necessary equipment OR no geographically accessible ASC at which the individual's physician has privileges OR an ASC's guideline prohibits use related to the individual's health condition or weight.No qualifying ASC within 30 miles
Geographic/access exceptions permit hospital outpatient site when ASC is not accessible or available.
- Age or concurrent service: The individual is aged 18 or younger OR the service is being performed in conjunction with an additional service that requires use of a hospital outpatient department in the same operative session.
Concurrent hospital-level services or pediatric age may require hospital outpatient site.
Clinical risk factors requiring hospital-level site
- Anesthesia risk: ASA classification III or higher OR personal history of complication of anesthesia OR documentation of alcohol dependence or history of cocaine use OR prolonged surgery (> 3 hours).ASA classification III or higher; > 3 hours for prolonged surgery
Refer to ASA classification examples.
- Cardiovascular risk: Uncompensated chronic heart failure (NYHA III/IV) OR recent MI (< 3 months) OR poorly controlled/resistant hypertension OR recent CVA (< 3 months) OR increased risk for cardiac ischemia (DES < 1 year or angioplasty < 90 days) OR symptomatic arrhythmia despite medication OR significant valvular heart disease.
Any cardiovascular condition listed supports hospital-level site.
- Liver risk: Advanced liver disease (MELD score > 8).MELD > 8
Higher MELD indicates need for hospital-level care.
- Pulmonary risk: COPD with FEV1 < 50% OR poorly controlled asthma (FEV1 < 80% despite treatment) OR moderate to severe OSA.FEV1 < 50% for COPD; FEV1 < 80% for asthma
Pulmonary function thresholds listed.
- Renal and other risks: End stage renal disease on dialysis OR morbid obesity (BMI ≥ 50) OR pregnancy OR bleeding disorder requiring replacement factor/blood products OR anticipated need for transfusion(s).BMI >= 50
These conditions individually may necessitate hospital-level site.
Inpatient setting reserved for when hospital-level indications exist.
ASC Site-of-Service Inclusion (shoulder arthroscopy)
Shoulder arthroscopy procedures will be considered for ASC site-of-service when ALL criteria below are satisfied:
Codes were added effective per policy history; ASC consideration requires meeting the same access and clinical-safety criteria used for other procedures.
Geographic access exception applies consistently across listed procedures.
Clinical risk factors that preclude ASC use are the same as those for other elective procedures in this guideline.
On-campus outpatient hospital and off-campus outpatient hospital sites are not considered medically necessary for the elective surgical procedures covered by this guideline when the site-of-service criteria are not met. The policy lists clinical risk factors and access exceptions that permit use of a hospital outpatient department; absent those criteria an ambulatory surgical center (ASC) is the preferred medically necessary site.
This medical policy does not apply to Medicare Advantage. The policy history documents effective dates and provider-notification timing for changes to ASC inclusion and other scope revisions; providers should follow the policy exclusions and effective dates noted in the history when determining applicability.
An inpatient hospital site is considered not medically necessary for the elective surgical procedures in this guideline unless one or more hospital-level indications are present. Hospital-level indications include the clinical risk factors and other exceptions listed in the criteria (for example, morbid obesity, pregnancy, bleeding disorders, anticipated transfusion, certain cardiac, pulmonary, hepatic, renal or anesthesia-related risks).
Services provided outside the policy criteria or delivered before the documented effective dates or provider-notification periods described in the policy history may not be considered medically necessary. The history specifies implementation and effective dates for changes (for example, ASC inclusion for shoulder arthroscopy and other revisions) that affect whether a given site-of-service request meets the guideline.
Procedure and Place-of-Service Coding
| 30400 | Rhinoplasty, primary; lateral and alar cartilages and/or elevation of nasal tip. |
| 30410 | Rhinoplasty, primary; complete, external parts including bony pyramid, lateral and alar cartilages, and/or elevation of nasal tip. |
| 30420 | Rhinoplasty, primary; including major septal repair. |
| 30430 | Rhinoplasty, secondary; minor revision (small amount of nasal tip work). |
| 30435 | Rhinoplasty, secondary; intermediate revision (bony work with osteotomies). |
| 30450 | Rhinoplasty, secondary; major revision (nasal tip work and osteotomies). |
| 31233 | Nasal endoscopy, diagnostic, unilateral or bilateral (separate procedure) |
| 31235 | Nasal/sinus endoscopy, diagnostic; with sphenoid sinusoscopy |
| 31240 | Nasal/sinus endoscopy, surgical; with concha bullosa resection. |
| 31253 | Nasal/sinus endoscopy, surgical with ethmoidectomy; total (anterior and posterior), including frontal sinus exploration. |
| 31254 | Nasal/sinus endoscopy, surgical with ethmoidectomy; partial (anterior). |
| 31255 | Nasal/sinus endoscopy, surgical with ethmoidectomy; total (anterior and posterior). |
| 31256 | Nasal/sinus endoscopy, surgical, with maxillary antrostomy. |
| 31257 | Nasal/sinus endoscopy, surgical with ethmoidectomy; total (anterior and posterior), including sphenoidotomy. |
| 31259 | Nasal/sinus endoscopy, surgical with ethmoidectomy; total (anterior and posterior), including sphenoidotomy, with removal of tissue from the sphenoid sinus. |
| 31267 | Nasal/sinus endoscopy, surgical, with maxillary antrostomy; with removal of tissue from maxillary sinus. |
| 42145 | Palatopharyngoplasty (e.g., uvulopalatopharyngoplasty, uvulopharyngoplasty) |
| 43235 | Esophagogastroduodenoscopy, flexible, transoral; diagnostic, including collection of specimen(s) by brushing or washing |
| 43238 | Esophagogastroduodenoscopy, flexible, transoral; with transendoscopic ultrasound-guided intramural or transmural fine needle aspiration/biopsy(s) |
| 43239 | Esophagogastroduodenoscopy, flexible, transoral; with biopsy, single or multiple |
| 43242 | Esophagogastroduodenoscopy, flexible, transoral; with transendoscopic ultrasound-guided intramural or transmural fine needle aspiration/biopsy(s) including examination of stomach and duodenum |
| 27415 | Osteochondral allograft, knee, open. |
| 27416 | Osteochondral autograft(s), knee, open (e.g., mosaicplasty). |
| 28446 | Open osteochondral autograft, talus (includes obtaining graft[s]). |
| 29866 | Arthroscopy, knee, surgical; osteochondral autograft(s) (e.g., mosaicplasty) (includes harvesting of the autograft[s]). |
| 29867 | Arthroscopy, knee, surgical; osteochondral allograft (e.g., mosaicplasty). |
| 29871 | Arthroscopy, knee, surgical; for infection, lavage and drainage. |
| 29873 | Arthroscopy, knee, surgical; with lateral release. |
| 29874 | Arthroscopy, knee, surgical; for removal of loose body or foreign body. |
| 29875 | Arthroscopy, knee, surgical; synovectomy, limited. |
| 29876 | Arthroscopy, knee, surgical; synovectomy, major. |
| 23700 | Manipulation under anesthesia, shoulder joint, including application of fixation apparatus. |
| 29805 | Arthroscopy, shoulder, diagnostic, with or without synovial biopsy. |
| 29806 | Arthroscopy, shoulder, surgical; capsulorrhaphy. |
| 29807 | Arthroscopy, shoulder, surgical; repair of SLAP lesion. |
| 29819 | Arthroscopy, shoulder, surgical; with removal of loose body or foreign body. |
| 29820 | Arthroscopy, shoulder, surgical; synovectomy, partial. |
| 29821 | Arthroscopy, shoulder, surgical; synovectomy, complete. |
| 29822 | Arthroscopy, shoulder, surgical; debridement, limited, 1 or 2 discrete structures. |
| 29823 | Arthroscopy, shoulder, surgical; debridement, extensive, 3 or more discrete structures. |
| 29824 | Arthroscopy, shoulder, surgical; distal claviculectomy including distal articular surface (Mumford procedure). |
| 63650 | Percutaneous implantation of neurostimulator electrode array, epidural. |
| 63655 | Laminectomy for implantation of neurostimulator electrodes, plate/paddle, epidural. |
| 63661 | Removal of spinal neurostimulator electrode percutaneous array(s), including fluoroscopy. |
| 63662 | Removal of spinal neurostimulator electrode plate/paddle(s) placed via laminotomy or laminectomy, including fluoroscopy. |
| 63663 | Revision including replacement of spinal neurostimulator electrode percutaneous array(s), including fluoroscopy. |
| 63664 | Revision including replacement of spinal neurostimulator electrode plate/paddle(s) placed via laminotomy or laminectomy, including fluoroscopy. |
| 63685 | Insertion or replacement of spinal neurostimulator pulse generator or receiver. |
| 63688 | Revision or removal of implanted spinal neurostimulator pulse generator or receiver. |
| 23700 | Manipulation under anesthesia, shoulder joint, including application of fixation apparatus (dislocation excluded). |
| 29805 | Arthroscopy, shoulder, diagnostic, with or without synovial biopsy (separate procedure). |
| 29806 | Arthroscopy, shoulder, surgical; capsulorrhaphy. |
| 29807 | Arthroscopy, shoulder, surgical; repair of SLAP lesion. |
| 29819 | Arthroscopy, shoulder, surgical; with removal of loose body or foreign body. |
| 29820 | Arthroscopy, shoulder, surgical; synovectomy, partial. |
| 29821 | Arthroscopy, shoulder, surgical; synovectomy, complete. |
| 29822 | Arthroscopy, shoulder, surgical; debridement, limited, 1 or 2 discrete structures. |
| 29823 | Arthroscopy, shoulder, surgical; debridement, extensive, 3 or more discrete structures. |
| 29824 | Arthroscopy, shoulder, surgical; distal claviculectomy including distal articular surface (Mumford procedure). |
| 63650 | Percutaneous implantation of neurostimulator electrode array, epidural. |
| 63655 | Laminectomy for implantation of neurostimulator electrodes, plate/paddle, epidural. |
| 63661 | Removal of spinal neurostimulator electrode percutaneous array(s), including fluoroscopy, when performed. |
| 63662 | Removal of spinal neurostimulator electrode plate/paddle(s) placed via laminotomy or laminectomy, including fluoroscopy, when performed. |
| 63663 | Revision including replacement, when performed, of spinal neurostimulator electrode percutaneous array(s), including fluoroscopy, when performed. |
| 63664 | Revision including replacement, when performed, of spinal neurostimulator electrode plate/paddle(s) placed via laminotomy or laminectomy, including fluoroscopy, when performed. |
| 63685 | Insertion or replacement of spinal neurostimulator pulse generator or receiver, direct or inductive coupling. |
| 63688 | Revision or removal of implanted spinal neurostimulator pulse generator or receiver. |
| 19 | Off-Campus-Outpatient Hospital (Place of Service code) |
| 21 | Inpatient Hospital (Place of Service code) |
| 22 | On Campus-Outpatient Hospital (Place of Service code) |
| 24 | Ambulatory Surgical Center (Place of Service code) |
Provider Requirements, Prior Authorization, and Denial Conditions
Prior Authorization Required
Prior authorization is required for site-of-service review for the elective procedures listed in this policy. Providers must request site-of-service prior authorization prior to scheduling the procedure when the procedure is among those subject to site-of-service review.
- Prior authorization requirement applies to listed elective surgical and diagnostic procedures.
- Requests must specify the proposed site of service (ASC, on-campus outpatient hospital, off-campus outpatient hospital, inpatient).
- Effective dates and code additions are reflected in the policy history and must be observed when submitting requests.
Documentation to Support Alternate Site
When requesting an alternate site of service (hospital outpatient or inpatient) instead of an ambulatory surgical center (ASC), providers must document clinical justification supporting why the ASC is not appropriate or accessible for the patient.
- Document why a geographically accessible ASC within 30 miles cannot provide the necessary care (no ASC with required equipment, no ASC where the physician has privileges, or ASC guidelines prohibit use for the individual's condition or weight).
- Document patient-specific factors such as age (e.g., individuals aged 18 or younger), concurrent services requiring hospital setting, or other clinical reasons necessitating a hospital outpatient or inpatient site.
- Include relevant clinical records, imaging, prior attempts to schedule at an ASC, and evidence of lack of ASC access when available.
Provider Actions and Denial Triggers
Providers are responsible for following policy requirements for prior authorization, site selection justification, and accurate place-of-service coding on claims. Failure to provide required documentation or meet criteria may result in denial of payment for the requested site of service.
- Use correct Place of Service codes on professional claims (19 = Off-Campus-Outpatient Hospital; 21 = Inpatient Hospital; 22 = On Campus-Outpatient Hospital; 24 = Ambulatory Surgical Center).
- Requests lacking necessary clinical justification for a non-ASC site may be denied as not medically necessary.
- Follow any additional provider-facing instructions in authorization communications, including submission timelines and required forms.
ASC Services Considered Medically Necessary When Criteria Met
Services provided at an ASC will be considered medically necessary when the policy criteria are met. Policy history contains effective dates and added procedure/code updates — ensure authorizations and claims reflect the applicable effective date and codes.
- Refer to the policy history for dates when procedures or CPT codes were added as ASC-eligible (e.g., shoulder arthroscopy CPT codes added effective 02/06/2026).
- Ensure the service meets the policy's clinical and access criteria to be approved at an ASC.
- If approval criteria are met, submit authorization for the ASC site with supporting documentation.
Background and Scope
Elective surgical procedures can be performed safely in multiple settings—ASCs, on- and off-campus outpatient hospitals, and inpatient hospitals—when selected based on patient safety and appropriateness. Site selection should consider clinical factors (such as ASA classification III or higher, significant cardiac, pulmonary, hepatic or bleeding risks, morbid obesity, pregnancy, or anticipated transfusion), availability and geographic access to a qualified ASC (the guideline references ASC access exceptions), and whether concurrent services require a hospital department. The policy updates reflect that, when criteria are met, certain procedures (for example, shoulder arthroscopy codes added in the 2026 history entry) may be considered medically necessary at an ASC; otherwise hospital-level care is appropriate only when hospital-level indications exist.
Key Definitions and Classifications
Policy Revision History
New utilization management guideline approved July 8, 2025; effective for dates of service on or after November 7, 2025, following 90-day provider notification — established ASC site-of-service review for select surgical procedures.
Interim review approved October 14, 2025; effective February 6, 2026 (following 90-day provider notification) — added shoulder arthroscopy to ASC for Select Surgical Procedures and added CPT codes 23700, 29805-29807, 29819-29828 effective 02/06/26.
Interim review approved November 11, 2025; effective March 4, 2026 (following 90-day provider notification) — title changed to include 'Diagnostic Procedures' and added UGI Endoscopy (policy 2.01.533) to procedures requiring site-of-service review.
Interim review approved December 23, 2025; effective April 8, 2026 (following 90-day provider notification) — added Cardiac Surgery section including CPT 33285 and HCPCS E0616 and related policy 2.02.510.
Interim review approved February 10, 2026; effective June 5, 2026 (following 90-day provider notification) — added Hand Surgery section including CPT codes 29848 and 64721 and related policy 7.01.595.
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