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0762 Outpatient Observation follwing IP Admission

How should observation be billed in this scenario :

Mbr arrives in ED on 03/01/17 and is kept in the ED from 03/01/2017 thru 03/02/2017 admitted on 03/03/2017.
The member was in ED under continuous care prior to admission over 24 hours later.

How should the observation time spent in the ED be billed?

Please provide documentation if possible.

Medical Billing and Coding Forum