Difference between IP and OP

Inpatient coding and outpatient coding are two distinct coding systems used in healthcare to classify and document medical services provided to patients. The main difference between the two lies in the setting of care and the level of intensity required for treatment.

Inpatient coding:

Inpatient coding: refers to the process of assigning codes to medical procedures, diagnoses, and services provided to patients who are admitted to a hospital or other healthcare facility for an overnight stay or longer. Inpatient coding is primarily used for reimbursement purposes, as it helps healthcare providers accurately bill insurance companies and government payers for the services rendered.

Outpatient Coding:

Outpatient coding, on the other hand, involves assigning codes to medical procedures, diagnoses, and services provided to patients who receive care on an outpatient basis. Outpatient care refers to healthcare services that do not require an overnight stay in a healthcare facility.

The most significant difference between inpatient coding and outpatient coding is the setting in which the services are provided.

Place of service

Place of Service Codes are two-digit codes placed on health care professional claims to indicate the setting in which a service was provided. The Centers for Medicare & Medicaid Services (CMS) maintain POS codes used throughout the health care industry.

They play a crucial role in medical billing and coding as they denote the location where the healthcare services were performed.

POS 11: Outpatient

POS 19: Off-campus Outpatient

POS 21: Inpatient

POS 22: On-campus Outpatient or Hospital

Same day admit and same day discharge:

The classification of a same-day-admit-and-discharge can depend on various factors.

Generally, if a patient is admitted and discharged on the same calendar date, it can be considered as an outpatient or observation stay. This is because the patient does not stay in the hospital past midnight.

However, there are exceptions. For instance, all inpatient-only procedures must be performed on an inpatient basis, even if the patient is discharged the same day. Also, a patient admitted and transferred to another acute care hospital on the same day is considered an inpatient.

It’s important to note that these classifications are often made for insurance purposes and the specific guidelines may vary depending on the healthcare system or insurance provider. Therefore, it’s always best to check with them directly for specific cases.

group of doctors walking on hospital hallway
group of doctors walking on hospital hallway

Report format:-

A medical report for Evaluation and Management (E/M) coding typically follows a specific structure to document a patient's medical history, physical examination, medical decision-making, and other relevant information for the purpose of accurately coding and billing for medical services. The key components of a medical report for E/M coding include:

1. Patient Information:

- Patient's name and date of birth

- Date of the encounter

- Medical record number or unique identifier

2. Chief Complaint (CC):

- A brief description of the patient's primary reason for the visit.

3. History of Present Illness (HPI):

- A detailed narrative of the patient's current health condition, including the onset, location, duration, severity, modifying factors, associated symptoms, and any relevant context.

4. Review of Systems (ROS):

- A comprehensive review of the patient's systems to identify any other symptoms or issues, even if they are not directly related to the chief complaint.

5. Past Medical, Family, and Social History (PFSH):

- Documentation of the patient's past medical history, including previous illnesses, surgeries, and medications.

- Information about family medical history, if relevant.

- Social history, including details on the patient's lifestyle, habits, and other factors that may affect their health.

6. Physical Examination (PE):

- A systematic and thorough examination of the patient's body systems and any findings related to the current complaint.

- Physical examination findings should be well-documented, including any abnormalities or pertinent negative findings.

7. Medical Decision-Making (MDM):

- An assessment and plan based on the patient's condition.

- Documentation of the number and complexity of problems addressed.

- Any diagnostic tests ordered or reviewed.

- The management options considered, including prescriptions, referrals, or other interventions.

8. Assessment and Plan:

- A summary of the patient's condition, including a diagnosis when appropriate.

- The treatment plan, including medications, procedures, referrals, or follow-up instructions.

- Prognosis and patient education, if relevant.

9. Medical Provider's Signature:

- The report should be signed and dated by the healthcare provider, indicating their responsibility for the information documented.

10. Time-Based Documentation:

- If the encounter is time-based (e.g., counseling or coordination of care), it's essential to document the total time spent with the patient.

The completeness and accuracy of the information documented in the report are critical for E/M coding, as the level of service (e.g., CPT codes) is determined based on the complexity and extent of the documentation. It's important to follow the specific guidelines and requirements of the E/M coding system (e.g., CMS guidelines for outpatient E/M services) to ensure proper coding and billing.