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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
Days to comply
—

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

Action needed
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.

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