All PlansPrior AuthHigh impact
Surgical Site of Care- Hospital Outpatient
Regence BlueShield·General Surgery, Orthopedics, Cardiothoracic Surgery +7 more·Prior Authorization
Effective date
Oct 1, 2026
We identified it
Jul 7, 2026
Summary
This policy establishes prior authorization requirements for surgical procedures performed in hospital outpatient departments instead of ambulatory surgery centers (ASCs) or physician offices. The policy defines 30 specific medical criteria that must be met for hospital outpatient site of care to be considered medically necessary. A revised version becomes effective October 1, 2026, requiring immediate workflow updates to billing systems and prior authorization processes.
Action Required
REQUIREMENTS:
- By September 1, 2026: Billing team must update prior authorization system to require site-of-care documentation and validation against all 30 criteria listed in Policy UM19 before approving hospital outpatient surgical procedures.
- By September 1, 2026: Providers must be notified that hospital outpatient surgical procedures now require prior authorization review demonstrating medical necessity per criteria I.A through I.DD. Update provider portal and billing guidelines documentation.
- Update claim submission templates and encounter forms to capture documentation supporting medical necessity criteria (e.g., ASC availability within 25 miles, physician privileges, ASA classification, comorbidities, BMI, medication requirements).
- Implement pre-authorization checklist in billing system requiring providers to document which specific criteria (I.A-I.DD) justify hospital outpatient setting rather than ASC.
- Train prior authorization staff on ASA Physical Status Classification system and all 30 medical necessity criteria to properly validate requests.
- Flag and deny claims for hospital outpatient surgical procedures lacking documented medical necessity per criteria I unless procedure-specific prior authorization is not required by plan.
- Note: Policy does NOT apply to ASC, physician office, or emergency facility procedures. Verify procedure codes against plan's covered procedure list before applying site-of-care requirements.