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Policy Snapshot

May 3, 2024

The Centers for Medicare & Medicaid Services (CMS) updated Medicare Learning Network resources to clarify the place of service codes you should use for inpatient services outside of a facility.

Place of service (POS) codes identify where a patient gets a service. Enter the correct 2-digit code on Medicare claims to ensure proper payment for physician services provided to patients in inpatient facilities like SNFs and hospitals. POS codes frequently associated with SNF extended care services include:

  • Inpatient hospital: 21
  • SNF (with Part A coverage): 31
  • Nursing facility (or SNF with no Part A coverage): 32 

If a patient is seen in a physician’s office, but is an inpatient of the hospital, use POS code 21 for inpatient hospital. The POS code reflects a different setting than the address and ZIP Code of the practice location (the physician’s office).