Back to dashboard
CommercialPrior AuthHigh impact

Special Alert March 2026 - Outpatient Surgical Site of Service Notice

Providence Health Plan·Orthopedics, Sports Medicine, Podiatry +1 more·Prior Authorization
Effective date
May 11, 2026
We identified it
Mar 1, 2026
Days to comply

Summary

Effective May 11, 2026, Providence Health Plan will add medical necessity review for hospital outpatient site of service (place of service 22) for knee arthroscopy, shoulder arthroscopy, and small joint surgery procedures on commercial fully insured groups. If medical necessity criteria are not met for outpatient hospital setting, the procedure must be performed at an ASC for coverage. Prior authorization requirements remain unchanged for the procedures themselves, but now include site-of-service review.

Action Required

Action needed
By May 11, 2026: (1) Billing team must update prior authorization submission process to explicitly identify when any of the 43 affected CPT codes will be performed at hospital outpatient setting (place of service 22). (2) Obtain signed attestation from all providers indicating whether geographically accessible ASCs are available; encourage prospective attestation submission now to Providence. (3) Update prior authorization request templates and encounter forms to require providers to indicate planned site of service and ASC availability. (4) Train billing staff that if medical necessity criteria are not met for outpatient hospital site of service, the claim will require service to be performed at ASC instead for coverage. (5) Configure billing system to flag any prior authorization requests for the listed CPT codes performed at place of service 22 for additional medical necessity review before submission. (6) Communicate to orthopedic surgery providers that existing prior authorization requirements remain in place but now include site-of-service medical necessity review. Failure to clearly indicate site of service or provide ASC attestation may delay prior authorization review. Use Providence Care Advance Provider Portal for medical necessity questionnaires when possible for streamlined/automatic authorization.

Affected Billing Codes

27422
27427
27428
29871
29873
29874
29875
29876
29879
29880
29881
29882
29884
29888
29889
23410
23412
23420
23430
29806
29807
29822
29823
29824
29825
29827
29828
27702
27703
27870
28110
28285
28289
28291
28292
28295
28296
28297
28299
28306
28308
28315
28750
Special Alert March 2026 - Outpatient Surgical Site of Service Notice | Providence Health Plan | PolicyChanges.app