CommercialPrior AuthHigh impact
Special Alert March 2026 - Outpatient Surgical Site of Service Notice
Providence Health Plan·Orthopedics, Sports Medicine, General Surgery·Prior Authorization
Effective date
May 11, 2026
We identified it
Oct 6, 2026
Summary
Effective 2026-05-11, 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 policy criteria are not met for outpatient hospital setting, services must be performed at an ASC for coverage. Providers without geographically accessible ASC must file attestation or note unavailability on prior authorization requests.
Action Required
Previously due 2026-05-11 (date passed; verify current applicability), billing and prior authorization teams must: (1) Update prior authorization workflows to require medical necessity review for hospital outpatient site of service (place of service 22) in addition to existing procedure-level prior authorization for all 43 specified CPT codes across knee arthroscopy, shoulder arthroscopy, and small joint surgery categories; (2) Require providers to clearly indicate on PA requests if any listed procedures will be performed in hospital outpatient setting; (3) Implement requirement that if medical policy criteria are not met for outpatient hospital site, the service must be performed at an ASC for coverage or claim will be denied; (4) Providers must either file signed attestation with Plan confirming ASC access/privileges or indicate on each PA request that no geographically accessible ASC is available to prevent authorization delays; (5) Encourage providers to complete prospective attestations immediately and use Care Advance Provider Portal medical necessity questionnaires to streamline process and enable automatic authorization when criteria are met. NOTE: This applies to Commercial Fully Insured Groups only and does not apply to Providence Medicare or Providence OHP members.