MedicaidCoverageMedium impact
Payment of Revenue Code 762
Maryland Medicaid·MD · Emergency Medicine·Hospital
Effective date
Nov 1, 1999
We identified it
Jun 20, 2026
Summary
Maryland Medicaid will now reimburse hospitals for Revenue Code 762 (Observation Room) charges on inpatient claims, but only after 2 hours following initial physician evaluation with a documented order to observe rather than admit. Additionally, hospitals must stop charging Emergency Services fees for patients formally admitted but awaiting bed availability.
Action Required
By November 1, 1999: Billing teams at Maryland hospitals must update systems to bill Revenue Code 762 for observation room services only after 2-hour minimum with documented physician evaluation and observation order. Stop billing Emergency Services (EMG) charges for formally admitted patients awaiting beds. Update billing workflows to include admitted patients awaiting beds in midnight census counts.