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CommercialPrior AuthHigh impact

Special Alert March 2026 - Outpatient Surgical Site of Service Notice

Providence Health Plan·Orthopedics, Sports Medicine, Podiatry·Prior Authorization
Effective date
May 11, 2026
We identified it
Sep 2, 2026
Days to comply

Summary

Effective 5/11/2026, 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 outpatient hospital criteria are not met, procedures must be performed at an ASC instead. Prior authorization requirements for the procedures themselves remain unchanged, but now include site of service review.

Action Required

Action needed
By May 11, 2026: (1) Billing and authorization team must update prior authorization submission processes to include site of service (place of service 22) medical necessity review for all 43 affected CPT codes. (2) Update billing system and PA submission templates to require providers to clearly indicate if procedures will be performed in hospital outpatient setting. (3) If facility does not have geographically accessible ASC or lacks ASC privileges, obtain and file signed attestation with Providence Health Plan NOW (prospective filing encouraged to prevent future auth delays). (4) Educate providers to note on PA requests if no ASC is available to prevent authorization delays. (5) Encourage providers to use Care Advance Provider Portal and complete medical necessity questionnaires for these procedures to streamline process and enable automatic authorizations. (6) Train front-desk and authorization staff that procedures not meeting outpatient hospital medical necessity criteria must be rerouted to ASC or claims will be denied. Applies to Providence commercial fully insured groups only—Medicare and OHP members are excluded.

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