Physician Services Handbook
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Medicine and Surgery

Evaluation and Management Services

Observation Care

Observation care procedure codes 99217-99220 or 99234-99236 are covered by Wisconsin Medicaid. Observation care includes all E&M services performed by the admitting physician on the date a recipient is admitted into observation care. This includes related services provided at other sites and all E&M services provided in conjunction with the admission into observation status.

Only the admitting physician may submit a claim for observation care. Other physicians are required to use another appropriate E&M outpatient or consultation procedure code.

When submitting claims for observation care, use the appropriate CPT procedure code. Only one observation care procedure code may be reimbursed per recipient, per DOS, per provider. Observation care codes are not reimbursed for recipients admitted into hospital inpatient care on the same DOS. Only place of service (POS) codes “22” (outpatient hospital) and “23” (emergency room — hospital) may be indicated on claims for observation care.

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