Awareness : OBC Tips

Observation Services Tip

Observation Services

Outpatient observation services require monitoring by a physician and other ancillary staff, which are reasonable and necessary to evaluate the patient’s condition. These services are only considered medically necessary when performed under a specific signed order of a physician.

Outpatient observation services are not to be used for the convenience of the hospital, its physicians, patients, patients’ families, or while waiting placement to another facility.

Outpatient observation services, generally, do not exceed 24 hours. Some patients may require a second day of observation up to a maximum of 48 hours.