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Do you know how it works for a physician to utilize an office in a hospital?

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Michele:
Question

Hi Alice,
Do you know how it works for a physician to utilize an office in a hospital? Does the hospital bill a facility fee and if so how do they do this if we are actually providing the E&M service?
Cynthia

Answer
Hi Cynthia,
As far as I know, a physician using office space in a hospital is the same as if they were renting an off-site location. The physician would bill the regular E&M codes but the hospital would not bill for facility fees. Usually the physician would pay a fee to the hospital for the space or it would be worked into an agreement that they have. Facility fees cannot be billed for E&M codes as the codes describe that the service is performed in an office setting and includes the fees for the location.
I hope that helps!
Michele

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