It’s worth noting that this outpatient scenario is similar to how the physician would bill for a service they performed in an inpatient setting. Although physician services are often provided in an outpatient setting (such as a physician office, ED, ASC, or diagnostic department), physicians aren’t limited to billing from these settings to capture their professional work. Many private practice physicians have admitting privileges with hospitals and can admit their patients for more acute care when warranted. During the hospital stay, the admitting physician typically makes frequent visits to the hospital and performs an inpatient E/M service at each visit. This is a billable service for the physician. Therefore, each E/M service performed is coded using the appropriate CPT® code(s) to capture the professional work (pro-fee).
The outpatient and inpatient scenarios above discuss capturing the professional work of the physician. However, the facility coders also would submit claims to bring in reimbursement for the facility resources used (such as the room cost, nursing personnel, drugs, supplies, etc.), which is separate from the professional fee.
The inpatient and outpatient hospital facilities bill using the UB-04 institutional claim form (also called the CMS-1450), shown in Figure 1. The electronic version of this form is called the 837I (Institutional), the ANSI ASC X 12N 837I, or the American National Standards Institute Accredited Standards Committee X12N 837I (Institutional) Version 5010A2.