Physician Advocacy Pays Off: DHS Announces Medicaid Will Recognize and Pay for Observation Status

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The state Department of Human Services (DHS) recently announced that Medicaid will start recognizing and reimbursing for observation status ― which occurs when a patient is in the hospital but not actually admitted as an inpatient―  sometime this summer.

Guidance and specifics, such as codes and billing indications, are not known at this time. As soon as DHS releases more details, the Pennsylvania Medical Society (PAMED) will make sure its members have all the information they need to know.

PAMED’s advocacy efforts included leading discussions with DHS, PAMED’s Medical Directors Forum, and the American Medical Association.