All You Need to Know about Inpatient vs. Outpatient Care & Coverage

by

Digital Health Expert. Managing Editor and Founder, MedicalRecords.com

Inpatient Vs Outpatient

i 3 Table of Contents

What is the difference between inpatient care and outpatient care?

Inpatient care means you are admitted to the hospital on a doctor’s order. Outpatient care is defined as a hospital or medical facility care that you receive without being admitted or for a stay of fewer than 24 hours (even if this stay occurs overnight).

Is SNF inpatient or outpatient?

Skilled nursing facility (SNF) care following an inpatient hospital stay. Medicare only covers a skilled nursing facility stay that is preceded by a qualifying inpatient hospital stay.

Are you a hospital inpatient or outpatient if you have Medicare?

The day before you’re discharged is your last inpatient day. You’re an outpatient if you’re getting emergency department services, observation services, outpatient surgery, lab tests, X-rays, or any other hospital services, and the doctor hasn’t written an order to admit you to a hospital as an inpatient.

What is the 3-midnight rule?

Federal Medicare law requires that a Medicare beneficiary be admitted as an in-patient in a hospital for at least three consecutive days, not counting the day of discharge, in order for Medicare Part A to pay for a subsequent skilled nursing facility (SNF) stay (called the “3-day rule”).

What are inpatient services?

Inpatient care refers to medical treatment that is provided in a hospital or other facility and requires at least one overnight stay. For the purposes of healthcare coverage, health insurance plans require you to be formally admitted to a hospital for a stay for a service to be considered inpatient.

What are examples of outpatient services?

Outpatient care, sometimes called ambulatory care, is defined as medical care or treatment that does not require an overnight stay in a hospital or medical facility. Outpatient care may be administered in a medical office or a hospital, but most commonly, it is hospital services provided in a medical office or outpatient surgery center.

What Are Outpatient Services?

  • Wellness and prevention services, such as psychological counseling and weight-loss programs (under a doctor’s orders)
  • Diagnostic services, such as blood and urine lab tests, x-rays, and cranial scans, like MRIs and CATS
  • Treatments such as some surgeries and chemotherapy
  • Rehabilitation such as physical therapy.

What is considered an outpatient procedure?

Outpatient surgery allows a person to return home on the same day that a surgical procedure is performed. Outpatient surgery is also referred to as ambulatory surgery or same-day surgery. More procedures are now being performed in a surgeon’s office, termed office-based surgery, rather than in an operating room.

How long can you be in observation status?

Observation-care services typically do not exceed 24 hours and two calendar days. Observation care for more than 48 hours without inpatient admission is not considered medically necessary but might be payable after medical review.

Is observation billed as outpatient?

During the time you’re getting observation services in the hospital, you’re considered an outpatient — this doesn’t count this time towards the 3-day inpatient hospital overnight stay needed for Medicare to cover your SNF stay.

How long can a hospital keep you on observation?

How long can the hospital keep me for observation? Medicare expects patients to remain in observation status for no more than 24 to 48 hours. But there are no rules limiting the time; some patients spend several days in observation.

How many hours can a patient be in observation?

Observation was meant to be a short period of time for providers to assess whether patients required admission for inpatient care, or could be discharged. Typically, this was meant to last fewer than 24 hours and only rarely spanned more than 48 hours.

What is inpatient and outpatient in insurance?

Inpatient medical treatment is typically defined as any medical treatment where an overnight stay in a hospital or clinic is deemed to be necessary. Outpatient insurance coverage will typically include benefits for the medical practitioner and specialist fees, routine check-ups, and vaccinations.

What are examples of outpatient services?

Any health care you can get without staying in a hospital is ambulatory care. That includes diagnostic tests, treatments, or rehab visits. These are some, but not all, types of outpatient care:

  • Blood tests
  • Biopsy
  • Chemotherapy
  • Colonoscopy
  • CT scan
  • Mammograms
  • Minor surgical procedures
  • Radiation treatments.

What are the different types of outpatient services?

Outpatient services can include:

  • Wellness and prevention, such as counseling and weight-loss programs
  • Diagnosis, such as lab tests and MRI scans
  • Treatment, such as some surgeries and chemotherapy
  • Rehabilitation, such as drug or alcohol rehab and physical therapy.

Is outpatient considered hospitalization?

Outpatient care, also called ambulatory care, is anything that doesn’t require hospitalization. But emergent cases can also be considered outpatient care. If you leave the emergency department the same day you arrive, you’re still considered an outpatient.

Are CPT codes used for inpatient or outpatient?

If signs and symptoms are a given part of primary diagnosis, they should NOT be coded in inpatient settings. … Since many outpatient procedures lack a definitive diagnosis, signs, and symptoms are acceptable for coding purposes.

What coding system is used for hospital inpatient procedures?

ICD-10-PCS procedure codes are designed only for hospital reporting of inpatient services. Current Procedural Terminology (CPT) codes will continue to be used for physician and outpatient services.

What is the difference between diagnosis and procedure codes?

Diagnosis and Procedure Coding Resources. Providers that bill Medicare use codes for patient diagnoses and codes for care, equipment, and medications provided. “Procedure” code is a catch-all term for codes used to identify what was done to or given to a patient (surgeries, durable medical equipment, medications, etc.).

Who assigns the diagnosis and procedure codes?

A primary user of ICD codes includes health care personnel, such as physicians and nurses, as well as medical coders, who assign ICD-9-CM codes to verbatim or abstracted diagnosis or procedure information and thus are originators of the ICD codes.

What is the difference between ICD 10 CM and PCS?

The primary difference between ICD-10-CM and ICD-10-PCS
This is the code set for diagnosis coding and is used for all healthcare settings in the United States. ICD-10PCS, on the other hand, is used in hospital inpatient settings for inpatient procedure coding.

Is inpatient coding hard?

For some, inpatient coding may prove to be more challenging than physician coding. Besides assigning diagnosis codes to conditions, you must determine the principal diagnosis (PDx) to assign the correct diagnosis-related group (DRG) to the inpatient stay.

How is DRG determined?

The formula used to calculate the payment for a specific case multiplies an individual hospital’s payment rate per case by the weight of the DRG to which the case is assigned. In a small number of MS-DRGs, classification is also based on the age, sex, and discharge status of the patient.