The Conundrum Presented by Outpatient Surgeries

Do you keep them under inpatient status? Or do you bring them in as outpatients and just keep them overnight? 

For our Medicare populations, in all of our organizations, the ability to follow the CPT code of the applicable surgical procedure is the determining factor to bill inpatient surgeries correctly. We are probably not alone in that, over the years, a few patients have had surgery and were discharged from the recovery area, only to find out later that the procedure included a CPT code on the inpatient-only list. This happens because not all of the team members involved speak in coding language. It is a pretty significant loss when you cannot recuperate the costs of those cases.

On the other side of that coin, those patients who are brought in for an outpatient procedure that we provide care for overnight can be just as big of a financial drain on your system. And while I always advocate for doing what is right for the patient in your care, we all know that getting reimbursed for that care is tantamount to keeping your doors open for the next patient.

Let’s review what has been happening. I am going to use my favorite procedure, total hip replacements, for this review. And I will say in this case we’re talking about elective procedures, not fractures. Up until 2019, these procedures were on the inpatient-only list. Some traditional insurances began pushing for outpatient status prior to this, but let’s stick with 2019. What was your reaction to the change? Did you keep them under inpatient status? Or did you bring them in as outpatients and just keep them overnight? 

Most of our hospitals already had what was called “joint camp,” a process to have these patients come to a class prior to the elective procedure and assess them physically, then prepare them for a short stay in the hospital. That was prior to 2019. Some of our organizations were so adept at it that those patients were in and out overnight in about 20 hours, or at the most, 36 hours. The rehabilitation department was on board, and the teams used a really well-honed process. Some places could even close those units by Friday afternoon and start back up on Monday morning. 

But now, what has happened? Well, for most, the same process is used. But there is absolutely not the same reimbursement. Did the care change? No – a big, resounding no. Did the cost change? One could argue that if you limit the prosthetic choice to a few of them, you could affect the cost a bit, but the same nurses, PCTs, therapists, diet aides, housekeepers, maintenance workers, and transporters are all still used in this now very expensive outpatient stay. Oh, and if your contribution margin on these is as low as some of ours are, you are paying for these, not getting paid for them. 

There are other outpatient procedures going this way as well. And again, I advocate for safe care, but do all of your patients need to stay overnight? Just think about this from the patient’s point of view for a second. It involves going back to their own home, with no call lights and no noise in the middle of the night. Yes, they need support, but does it have to be nursing? So, what do we do? I have to give a shout-out to my friend Julie here, as I think they have figured it out. They are providing the surgery and all of the rehabilitation for these patients on dedicated days of the week so that everyone is ready to rehabilitate and educate – and they discharge the same day. This can make for a long day for your therapists, because that department is really used to eight-hour days, but if you do it correctly, you can probably add an extra afternoon shift on those dedicated days. What a great idea that is – and one I will be spreading in our organizations. That is forward thinking!

Facebook
Twitter
LinkedIn

Mary Beth Pace, RN, BSN, MBA, ACM, CMAC

Mary Beth Pace is vice president of care management at Trinity Health.

Related Stories

Can Any Physician Enter an Inpatient Order?

Can Any Physician Enter an Inpatient Order?

Let’s talk about the term “attending physician.”  The simplest definition is the physician primarily responsible for a hospitalized patient’s care.  While there may be many

Read More

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

Mastering OB GYN Coding Accuracy: Precision Coding for Compliance and Reimbursement

Gain clarity and confidence in OB‑GYN coding with this expert‑led webcast featuring Stacey Shillito, CDIP, CPMA, CCS, CCS‑P, CPEDC, COPC. You’ll learn how to apply global maternity package rules accurately, select the right CPT codes for procedures and visits, and identify documentation gaps that lead to denials. With practical guidance and real examples, this session helps you strengthen compliance, reduce audit risk, and ensure accurate reimbursement for women’s health services.

May 14, 2026

2026 ICD-10-CM/PCS Coding Clinic Update Webcast Series

Uncover essential coding insights with nationally recognized coding authority Kay Piper, RHIA, CDIP, CCS. Through ICD10monitor’s interactive, on‑demand webcast series, Kay walks you through the AHA’s 2026 ICD‑10‑CM/PCS Quarterly Coding Clinics, translating each update into practical, easy‑to‑apply guidance designed to sharpen precision, ensure compliance, and strengthen day‑to‑day decision‑making. Available shortly after each official release.

April 13, 2026

2026 ICD-10-CM/PCS Coding Clinic Update: Fourth Quarter

Uncover critical guidance on the ICD-10-CM/PCS code updates. Kay Piper reviews and explains ICD-10-CM/PCS coding guidelines in the AHA’s fourth quarter 2026 ICD-10-CM/PCS Coding Clinic in an easy to access on-demand webcast.

December 14, 2026

2026 ICD-10-CM/PCS Coding Clinic Update: Third Quarter

Uncover critical guidance on the ICD-10-CM/PCS code updates. Kay Piper reviews and explains ICD-10-CM/PCS coding guidelines in the AHA’s third quarter 2026 ICD-10-CM/PCS Coding Clinic in an easy to access on-demand webcast.

October 12, 2026

Trending News

Featured Webcasts

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

The PEPPER Returns – Risk and Opportunity at Your Fingertips

Join Ronald Hirsch, MD, FACP, CHCQM for The PEPPER Returns – Risk and Opportunity at Your Fingertips, a practical webcast that demystifies the PEPPER and shows you how to turn complex claims data into actionable insights. Dr. Hirsch will explain how to interpret key measures, identify compliance risks, uncover missed revenue opportunities, and understand new updates in the PEPPER, all to help your organization stay ahead of audits and use this powerful data proactively.

March 19, 2026

Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue

Stay ahead of the 2026-2027 audit surge with “Top 10 Audit Targets for 2026-2027 for Hospitals & Physicians: Protect Your Revenue,” a high-impact webcast led by Michael Calahan, PA, MBA. This concise session gives hospitals and physicians clear insight into the most likely federal audit targets, such as E/M services, split/shared and critical care, observation and admissions, device credits, and Two-Midnight Rule changes, and shows how to tighten documentation, coding, and internal processes to reduce denials, recoupments, and penalties. Attendees walk away with practical best practices to protect revenue, strengthen compliance, and better prepare their teams for inevitable audits.

January 29, 2026

Trending News

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

BLOOM INTO SAVINGS! Get 25% OFF during our spring sale through March 27. Use code SPRING26 at checkout to claim this offer.

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24