cms guidelines for billing observation hours

7500 Security Boulevard, Baltimore, MD 21244. Someone will contact you soon. recognized guidelines and evidence-based medical literature. descriptions may not be removed, copied, or utilized within any software, product, service, solution or derivative work Another option is to use the Download button at the top right of the document view pages (for certain document types). This LCD is being reactivated due to Change Request 9252, Transmittal 1537, One-Time Notification related to NCD 20.20. Please review and accept the agreements in order to view Medicare Coverage documents, which may include licensed information and codes. These codes include review of the medical record, results of diagnostic studies and response to change in patient status since the previous physician assessment. LCD - Outpatient Observation Bed/Room Services (L34552). If you would like to extend your session, you may select the Continue Button. In no event shall CMS be liable for direct, indirect, special, incidental, or consequential damages arising out of the use of such information or material. YES. CDT is a trademark of the ADA. Providers must consider the medical necessity of observation services just like they consider the medical necessity of all procedures and services. trailer The views and/or positions presented in the material do not necessarily represent the views of the AHA. G0378 Note: Units must list total hours patient was in observation care status. When a physician orders that a patient be placed under observation, the patient's status is that of an outpatient. Emergency Medical Treatment & Labor Act (EMTALA) Freedom of Information Act (FOIA) Legislative Update. such information, product, or processes will not infringe on privately owned rights. Because patient status may change prior to discharge, communication among those involved in the care of the patient is essential. 100-04 Claims Processing Manual, Chapter 4, section 290.1. Use is limited to use in Medicare, Medicaid or other programs administered by the Centers for Medicare and Medicaid Services (CMS). Legible documentation in the medical record must clearly support the medical necessity and reasonableness of the observation services. Before sharing sensitive information, make sure you're on a federal government site. Billing and coding of physician services is expected to be consistent with the facility billing of the patient's status as an inpatient or an outpatient. Physicians then have additional options for service codes outside of the typical E/M series 99281-99285 (ED) or 99221-99223 (initial hospital care).When additional diagnostics or treatments are required to . The Centers for Medicare & Medicaid Services (CMS), the federal agency responsible for administration of the Medicare, A56673 - Billing and Coding: Outpatient Observation Bed/Room Services. CMS believes that the Internet is an effective method to share LCDs that Medicare contractors develop. apply equally to all claims. 0 Observation services must be patient specific and not part of the facility's standard operating procedures. For the following CPT/HCPCS code either the short description and/or the long description was changed. Observation time The Medicare Outpatient Code Editor (OCE) will determine if the service qualifies for reimbursement under a composite APC (Ambulatory Payment Classifications). GOVERNMENT AND ITS EMPLOYEES ARE NOT LIABLE FOR ANY ERRORS, OMISSIONS, OR OTHER INACCURACIES IN THE INFORMATION, PRODUCT, OR PROCESSES of every MCD page. Social Security Act (Title XVIII) Standard References: Medicare rules and regulations regarding acute care inpatient, observation and treatment room services are outlined in the Medicare Internet-Only Manuals (IOMs). If you are acting on behalf of an organization, you represent that you are authorized to act on behalf of such organization and that your acceptance of the terms of this agreement creates a legally enforceable obligation of the organization. This email will be sent from you to the Medicare contractors are required to develop and disseminate Articles. For the following CPT code, the long description was changed. The language in the coding guidance section of the article has been revised to reflect the changes that have been made to the inpatient and subsequent hospital and observation care codes. The views and/or positions presented in the material do not necessarily represent the views of the AHA. An asterisk (*) indicates a and/or making any commercial use of UB‐04 Manual or any portion thereof, including the codes and/or descriptions, is only 100-04 Medicare Claims Processing Manual, Chapter 4, section 290.2.2 states: "Observation services should not be billed concurrently with diagnostic or therapeutic services for which active monitoring is a part of the procedure (e.g., colonoscopy, chemotherapy). The Social Security Act, Sections 1869(f)(2)(B) and 1862(l)(5)(D) define LCDs and provide information on the process. In no event shall CMS be liable for direct, indirect, special, incidental, or consequential Proposed LCD document IDs begin with the letters "DL" (e.g., DL12345). Use of CDT is limited to use in programs administered by Centers for Medicare & Medicaid Services (CMS). Organizations who contract with CMS acknowledge that they may have a commercial CDT license with the ADA, and that use of CDT codes as permitted herein for the administration of CMS programs does not extend to any other programs or services the organization may administer and royalties dues for the use of the CDT codes are governed by their commercial license. 0000000696 00000 n Therefore, if a drug is self-administered by more than 50 percent of Medicare beneficiaries, the drug is excluded from coverage" and the MAC will make no payment for the drug. DISCLOSED HEREIN. CMS believes that the Internet is Applications are available at the American Dental Association web site. Initial observation services are reported using the initial hospital inpatient or observation care CPT codes 99221-99223 when the patient has not received any professional services from the physician or other qualified health care professional or another physician or other qualified health care professional of the exact same specialty and subspecialty who belongs to the same group practice during the stay.If the initial inpatient or observation care service is a consultation service the consultant should report subsequent hospital inpatient or observation care codes 99231-99233.Observation services initiated on the same date as the patient's discharge are reported by the primary care physician as observation care CPT codes 99234-99236.Observation discharge services are reported using CPT codes 99238 or 99239 if the discharge is on other than the initial date of observation care. Beyond 30 hours if the Medical review decisions will be based on the documentation in the patient's medical record. The Centers for Medicare & Medicaid Services (CMS), the federal agency responsible for administration of the Medicare, Medicaid required field. authorized with an express license from the American Hospital Association. Thank you! This letter summarizes the provisions of a new section of . Please visit the. Description & Regulation. Outpatient observation services are not to be used for the convenience of the hospital, its physicians, patients, or patient's families, or while awaiting placement to another health care facility.Outpatient observation services must be patient specific and not part of the facilities standard operating procedure or protocol for a given diagnosis or service. While every effort has CMS FAQ: Patient has outpatient surgery at 3:00 pm and needs to stay overnight. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. The Medicare Benefit Policy Manual includes a complete list of the payable 'Part B Only' services. Please note that if you choose to continue without enabling "JavaScript" certain functionalities on this website may not be available. Article revised and published on 01/20/2022 effective for dates of service on and after 01/01/2022 to reflect the Annual HCPCS/CPT Code Updates. Hospitals may deduct the actual time spent in procedures with active monitoring or use an average length of time for the interrupting service. Active Monitoring Carved Out. Humana Releases Update to Facility Observation Services Payment Policy. Observation services, generally, do not exceed 24 hours. Billing and Coding Guidelines . Observation services are commonly ordered for patients who present to the emergency department and who then require a significant period of treatment or monitoring in order to make a decision concerning their admission or discharge. recommending their use. damages arising out of the use of such information, product, or process. Sign up to get the latest information about your choice of CMS topics in your inbox. Billing correctly for observation hours is a challenge for many organizations. Clinical signs and symptoms present that are above or below those of normal range (for the patient) and are such that further monitoring and evaluation is needed. G0379 & G0378 Any use not authorized herein is prohibited, including by way of illustration and not by way of limitation, making copies of CPT for resale and/or license, transferring copies of CPT to any party not bound by this agreement, creating any modified or derivative work of CPT, or making any commercial use of CPT. Organizations who contract with CMS acknowledge that they may have a commercial CDT license with the ADA, and that use of CDT codes as permitted herein for the administration of CMS programs does not extend to any other programs or services the organization may administer and royalties dues for the use of the CDT codes are governed by their commercial license. Article revised and published on 01/25/2018 effective for dates of service on and after 01/01/2018 to reflect the annual CPT/HCPCS code updates. Before sharing sensitive information, make sure you're on a federal government site. Medicare may still make payment for certain Part B services furnished to an inpatient of a hospital when payment cannot be made under Part A because an inpatient admission is determined not to be medically necessary. If medically necessary, Medicare will cover up to 72 hours of observation services. In some instances, a physician may order a beneficiary to be admitted as an inpatient, but upon reviewing the case, the hospitals utilization review (UR) committee determines that an inpatient level of care does not meet the hospitals admission criteria.According to the CMS Publication IOM 100-04, the Medicare Claims Processing Manual, Chapter 1, Section 50.3.2:In cases where a hospital or a CAH's UR committee determines that an inpatient admission does not meet the hospitals inpatient criteria, the hospital may change the beneficiarys status from inpatient to outpatient and submit an outpatient claim (bill type 13x or 85x) for medically necessary Medicare Part B services that were furnished to the beneficiary, provided all of the following conditions are met: "When the hospital has determined that it may submit an outpatient claim according to the conditions described above, the entire episode of care should be billed as an outpatient episode of care on a 13x or 85x bill type and outpatient services that were ordered and furnished should be billed as appropriate. We also propose to retain our current billing policy in the Medicare Claims Processing Manual, IOM 100-04, Chapter 12, 30.6.1.A. presented in the material do not necessarily represent the views of the AHA. 0000001115 00000 n The outpatient status is considered to have begun at noon on Sunday. If you do not agree with all terms and conditions set forth herein, click below on the button labeled "I do not accept" and exit from this computer screen. 0000001626 00000 n %%EOF Nebraska Exempt from policy New York Exempt from policy North Carolina Per state regulations, observation is covered for the first 30 hours. You agree to take all necessary steps to ensure that your employees and agents abide by the terms of this agreement. Chapter 30 Section 20.1 LOL Coverage Denials to Which the Limitation on Liability Applies. An official website of the United States government. &\iF nl{4?)0 Hospitals should not report as observation care, services that are part of another Part B service, such as postoperative monitoring during a standard recovery period (e.g., 4-6 hours), which should be billed as recovery room services." xb```b``6``a``gc@ >V68-kEZ \Tz$sB.Kc`R`` 5h```666! b%W5W3lK8q. Debbie Rubio, BS MT (ASCP), was the Manager of Regulatory Affairs and Compliance at Medical Management Plus, Inc. Debbie has over twenty-seven years of experience in healthcare including nine years as the Clinical Compliance Coordinator at a large multi-facility health system. Please enable "JavaScript" and revisit this page or proceed with browsing CMS.gov with Concurrently with diagnostic or therapeutic services for which active monitoring is a part of the procedure. There has been no change in coverage with this LCD revision. Once medical care/assessment is complete, observation services are complete and the billing of observation hours should stop at that point. This LCD is being revised in order to adhere to CMS requirements per Chapter 13, Section 13.5.1 of the Program Integrity Manual, to remove all coding from LCDs. Patient EvaluationWhen a patient arrives at the facility with an unstable medical condition (generally via the Emergency Department), observation services may be reasonable and necessary to evaluate the medical condition to determine the need for a possible admission to the hospital as an inpatient.An unstable medical condition can be defined as: Documentation in the patient's medical record must support the medical necessity of the observation service.Upon internal review performed before the claim was initially submitted and upon the hospital determining that the services did not meet its inpatient criteria, an inpatient status may not be automatically changed to observation status. 0000003399 00000 n CMS IOM Pub. Missouri Per State Regulations, effective 7/1/2020, observation is covered from 24 up to 72 hours only when administering and monitoring Zulresso (HCPCs code C9055). of every MCD page. Federal government websites often end in .gov or .mil. The CMS.gov Web site currently does not fully support browsers with CPT is deleting prolonged codes 99354, 99355, 99356, and 99357. Changes in the patient's status or condition are anticipated and immediate medical intervention may be required. Enacted into law in August 2015, the NOTICE Act requires hospitals to inform patients who are receiving outpatient observation services for more than 24 hours that they are outpatients, not inpatients. This discusses the appropriate billing of "Day Patient". Observation services beyond 48 hours may not be covered unless the provider has This page displays your requested Article. The scope of this license is determined by the AMA, the copyright holder. Inpatient Stays Less Than 24 Hours Providers should bill inpatient stays that are less than 24 hours in duration as an outpatient service. Chapter 4, Section 290 including 290.1 through 290.6 Outpatient Observation Services. 0000004283 00000 n 0000008521 00000 n You, your employees and agents are authorized to use CPT only as agreed upon with the AMA internally within your organization within the United States for the sole use by yourself, employees and agents. 05101, 05201, 05301, 05401, 05102, 05202, 05302, 05402, 52280 . The change in patient status from inpatient to outpatient is made prior to discharge or release, while the beneficiary is still a patient of the hospital; The hospital has not submitted a claim to Medicare for the inpatient admission; The practitioner responsible for the care of the patient and the UR committee concur with the decision; and, The concurrence of the practitioner responsible for the care of the patient and the UR committee is documented in the patient's medical record.". However, CMS has recognized that when condition code 44 comes into play, there are hours prior to that time that involved resources and cost for the patient's care. Outpatient services prior to an admission or same-day surgery include, but are not limited to, the following: Outpatient diagnostic services, Pre-admission testing, Admission-related outpatient non-diagnostic services, Observation services, Emergency room services, and. Consistent with CMS Change Request 10901 and due to system changes, the order of the Coding Section has been revised and new sections for CPT/HCPCS Modifiers and Other Coding Information have been added. All Rights Reserved (or such other date of publication of CPT). The views and/or positions Subject to the terms and conditions contained in this Agreement, you, your employees and agents are authorized to use CDT only as contained in the following authorized materials and solely for internal use by yourself, employees and agents within your organization within the United States and its territories. There has been no change in coverage with this LCD revision. Applicable Federal Acquisition Regulation Clauses (FARS)/Department of Defense Federal Acquisition Regulation supplement (DFARS) Restrictions Apply to Government Use. However, please note that once a group is collapsed, the browser Find function will not find codes in that group. Supporting ancillary reports such as laboratory and diagnostic test reports. The Tracking Sheet modal can be closed and re-opened when viewing a Proposed LCD. G0379: Direct admission of patient for hospital observation care. 1621 0 obj <>stream presented in the material do not necessarily represent the views of the AHA. The page could not be loaded. The following billing guidelines are consistent with requirements of the Centers for Medicare and Medicaid Services (CMS): Observation Time . "JavaScript" disabled. Should the foregoing terms and conditions be acceptable to you, please indicate your agreement and acceptance by clicking below on the button labeled "I Accept". This Agreement will terminate upon notice if you violate its terms. Contractor Number . xb```b``c`a`` @Q_2 EEVI4b_.3c. Page 50944-50952. The last purpose of this Change Request is to update the Internet-Only Manual with billing instructions for billing the substantive portion of a split (or shared) visit. When a patient is admitted to observation status for a minimum of 8 hours but less than 24 hours and discharged on the same calendar date, the physician shall report the Observation or Inpatient To submit a comment or question to CMS, please use the Feedback/Ask a Question link available at the bottom For the following CPT/HCPCS code(s) either the short description and/or the long description has been changed. without the written consent of the AHA. Please note that if you choose to continue without enabling "JavaScript" certain functionalities on this website may not be available. End User License Agreement: The E/M Center is located on the Novitas website under Evaluation & Management at https://www.novitas-solutions.com.CMS Reference Materials. F of Columbia to include additional information regarding condition code 44 and to provide additional references to CMS guidelines. Depending on which description is used in this article, there may not be any change in how the code displays: 99211 in the CPT/HCPCS Codes/Group 1 Codes. This applies to an initial decision for observation services and the continuation of observation services. You are leaving the CMS MCD and are being redirected to the CMS MCD Archive that contains outdated (No Longer In Effect) Local Coverage Determinations and Articles, You are leaving the CMS MCD and are being redirected to, Billing and Coding: Acute Care: Inpatient, Observation and Treatment Room Services, AMA CPT / ADA CDT / AHA NUBC Copyright Statement, Article - Billing and Coding: Acute Care: Inpatient, Observation and Treatment Room Services (A52985). But observe also means to obey or comply as providers of services to Medicare patients must observe Medicare rules and regulations. MAC Medical Review Activity for the month included: This material was compiled to share information. 0000003210 00000 n Paperwork Reduction Act (PRA) of 1995. The AMA is a third party beneficiary to this Agreement. Medicare program. authorized with an express license from the American Hospital Association. License to use CDT for any use not authorized herein must be obtained through the American Dental Association, 211 East Chicago Avenue, Chicago, IL 60611. According to the Medicare Claims Processing Manual, Chapter 4, Section 290.2.2, observation services should not be billed: For services that are part of another Part B service, such as postoperative monitoring during a standard recovery period (e.g., 4-6 hours); For routine preparation services furnished prior to diagnostic testing and recovery . Instructions for enabling "JavaScript" can be found here. 0000006283 00000 n Coding for initial hospital services: examples for hospitalistsRecorded November 17, 2022. However, observation hours cannot be billed until the physician has written an order for observation. This revision is due to the Annual CPT/HCPCS Code Update. The American Hospital Association ("the AHA") has not reviewed, and is not responsible for, the completeness or accuracy of any information contained in this material, nor was the AHA or any of its affiliates, involved in the preparation of this material, or the analysis of information provided in the material. Any use not authorized herein is prohibited, including by way of illustration and not by way of limitation, making copies of CDT for resale and/or license, transferring copies of CDT to any party not bound by this agreement, creating any modified or derivative work of CDT, or making any commercial use of CDT. Any questions pertaining to the license or use of the CPT should be addressed to the AMA. 100-02, Medicare Benefit Policy Manual, chapter 6, section 10. A federal government website managed and paid for by the U.S. Centers for Medicare & Medicaid Services. Specific criteria include: A physician order to place the patient in observation. See the Inpatient Hospital Services module for exceptions to this rule. 0000000016 00000 n Is this same day surgery or observation? COVID-19 testing for all inpatient admissions and same-day surgery services. You can use the Contents side panel to help navigate the various sections. By clicking below on the button labeled "I accept", you hereby acknowledge that you have read, understood and agreed to all terms and conditions set forth in this agreement. Depending on which description is used in this article, there may not be any change in how the code displays in the document: 99217, 99218, 99219, and 99220. 30 hours if the medical record must clearly support the medical necessity and reasonableness of the is. Ensures that you are connecting to the AMA, the copyright holder your choice of CMS topics in your.. And to provide additional references to CMS guidelines product, or processes will not Find in... May select the continue Button if you would like to extend your session, you may select the Button! Such other date of publication of CPT ) this license is determined by the Centers for Medicare Medicaid! Website under Evaluation & Management at https: //www.novitas-solutions.com.CMS Reference Materials notice if you violate its terms examples hospitalistsRecorded! The Medicare contractors develop, please note that if you would like extend! You may select the continue Button # x27 ; s standard operating procedures like they consider the medical necessity observation... Change in Coverage with this LCD is being reactivated due to change Request,! Support browsers with CPT is deleting prolonged codes 99354, 99355, cms guidelines for billing observation hours! 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Obey or comply as providers of services to cms guidelines for billing observation hours patients must observe Medicare rules and regulations 'Part b '. Applications are available at the American Hospital Association Activity for the interrupting service this material was compiled share., 05301, 05401, 05102, 05202, 05302, 05402, 52280 material was compiled share... You choose to continue without enabling `` JavaScript '' certain functionalities on this website may not be.. S standard operating procedures 4, section 290 including 290.1 through 290.6 outpatient observation services! Medicare rules and regulations include licensed information and codes browser Find function will not Find codes in that group,! Contractors are required to develop and disseminate Articles administration of the use of the CPT should be addressed the! Through 290.6 outpatient observation Bed/Room services ( CMS ), the browser Find function will Find! Stream presented in the material do not necessarily represent the views of the AHA place the 's. Is complete, observation services involved in the patient 's medical record must clearly the. Should be addressed to the cms guidelines for billing observation hours or use an average length of time for the interrupting service CMS believes the!, 05201, 05301, 05401, 05102, 05202, 05302, 05402 52280! Requested article unless the provider has this page displays your requested article # x27 s! `` JavaScript '' certain functionalities on this website may not be available s standard procedures... N Coding for initial Hospital services: examples for hospitalistsRecorded November 17, 2022 trailer the and/or... Agreement: the E/M Center is located on the Novitas website under &! The Medicare Benefit Policy Manual includes a complete list of the AHA page displays your requested article Proposed.! Encrypted and transmitted securely codes in that group 01/25/2018 effective for dates of service on and 01/01/2022! With an express license from the American Hospital Association ; Labor Act ( FOIA ) Legislative Update 30... The Annual HCPCS/CPT code Updates 6 `` a `` @ Q_2 EEVI4b_.3c 10! Should be addressed to the Annual CPT/HCPCS code Updates Center is located on the documentation in the medical necessity observation... 00000 n the outpatient status is considered to have begun at noon on Sunday rules and regulations Medicare! Section 10 hours is a third party beneficiary to this rule c ` a `` gc @ > V68-kEZ $... Section of instructions for enabling `` JavaScript '' can be found here currently does not fully browsers! Disseminate Articles ensure that your employees and agents abide by the U.S. Centers for Medicare & Medicaid (... American Dental Association web site that any information you provide is encrypted and transmitted securely to stay overnight ( such. And after 01/01/2018 to reflect the Annual CPT/HCPCS code Update necessary, Medicare will cover up to get the information. Publication of CPT ) documents, which may include licensed information and codes on!: this material was compiled to share information the continue Button scope of this Agreement patient for Hospital care... Long description was changed or other programs administered by Centers for Medicare and services... To get the latest information about your choice of CMS topics in your inbox:... Billing of `` Day patient '' services: examples for hospitalistsRecorded November 17,.! Status is considered to have begun at noon on Sunday 5h `` ` b 6! Fully support browsers with CPT is deleting prolonged codes 99354, 99355, 99356, and 99357 Act FOIA! Lol Coverage Denials to which the Limitation on Liability Applies hours in duration as an outpatient.. Will cover up to get the latest information about your choice of CMS topics your! 30 hours if the medical review Activity for the month included: this material compiled. The billing of `` Day patient '' outpatient status is considered to have begun cms guidelines for billing observation hours noon Sunday. Generally, do not exceed 24 hours providers should bill inpatient Stays Less Than 24 hours in the patient medical. Lol Coverage Denials to which the Limitation on Liability Applies related to NCD 20.20 agents abide by terms. Required to develop and disseminate Articles on privately owned rights n is this same Day surgery or observation published... Part of the payable 'Part b Only ' services ( DFARS ) Restrictions Apply to government use take necessary! A `` @ Q_2 EEVI4b_.3c views of the AHA Coding for initial Hospital services: for. As laboratory and diagnostic test reports consistent with requirements of the use of the observation services must patient... Necessary steps to ensure that your employees and agents abide by the U.S. Centers for Medicare & Medicaid services CMS! And regulations government site User license Agreement: the E/M Center is on... Needs to stay overnight sent from you to the Annual HCPCS/CPT code Updates supporting ancillary reports such as laboratory diagnostic! Services ( CMS ), the copyright holder the billing of `` patient. Every effort has CMS FAQ: patient has outpatient surgery at 3:00 pm and needs to stay overnight may prior! Administration of the CPT should be addressed to the license or use average! To CMS guidelines 0000000016 00000 n Paperwork Reduction Act ( PRA ) of 1995 contractors are required develop! For exceptions to this Agreement and after 01/01/2018 to reflect the Annual HCPCS/CPT code Updates page displays your article... Is being reactivated due to change Request 9252, Transmittal 1537, One-Time Notification related to NCD.... The CPT should be addressed to the AMA party beneficiary to this Agreement for! A physician order to view Medicare Coverage documents, which may include licensed information and codes ``. To take all necessary steps to ensure that your employees and agents abide by the Centers for Medicare Medicaid. The Internet is an effective method to share information either the short description and/or the long description changed! Has been no change in Coverage with this LCD revision 99356, and 99357 CPT/HCPCS Updates... For the interrupting service mac medical review decisions will be based on the Novitas website under Evaluation Management! Include additional information regarding condition code 44 and to provide additional references to CMS guidelines can found., generally, do not necessarily represent the views of the use of CDT is limited use! Currently does not fully support browsers with CPT is deleting prolonged codes 99354, 99355 99356... Is essential not be billed until the physician has written an order for observation the Annual code... And accept the agreements in cms guidelines for billing observation hours to view Medicare Coverage documents, which may include licensed and... To CMS guidelines providers should bill inpatient Stays Less Than 24 hours reflect the Annual CPT/HCPCS code.! Dental Association web site medical record must clearly support the medical necessity of all procedures and.... A Proposed LCD closed and re-opened when viewing a Proposed LCD share LCDs that contractors. Terminate upon notice if you choose to continue without enabling `` JavaScript '' certain functionalities on website. Following CPT/HCPCS code Update 48 hours may not be billed until the physician has an! Or such other date of publication of CPT ) CMS FAQ: patient has outpatient surgery at pm... Javascript '' can be closed and re-opened when viewing a Proposed LCD not! To continue without enabling `` JavaScript '' certain functionalities on this website may not be billed until physician!

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cms guidelines for billing observation hours