Medicare Claims Processing Manual (Pub. 100-04), Ch. 2 § 90.6
Definition of Encounter
90.6 - Definition of Encounter
(Rev. 1, 10-01-03)
HO-350F
The term “encounter” means a direct personal contact in the hospital between a patient
and a physician, or other person who is authorized by State law and, if applicable, by
hospital staff bylaws to order or furnish services for diagnosis or treatment of the patient.
Direct personal contact does not include telephone contacts between a patient and
physician. Nor is the compensation arrangement between the physician and the hospital
relevant to whether an encounter has occurred. Patients will be treated as hospital
outpatients for purposes of billing for certain diagnostic services that are ordered during
or as a result of an encounter that occurred while such patients are in an outpatient status
at the hospital. If a Medicare outpatient is referred to another provider or supplier for
further diagnostic testing or other diagnostic services as a result of an encounter that
occurs in this hospital, the hospital is responsible for arranging with the other entity for
the furnishing of services. Hospitals are not required to verify that all ordered services
are furnished but only to assure that, when it is necessary to refer a patient to an outside
entity, the referral is made to a provider or supplier with which the referring hospital an
arrangement. This requirement is necessary to assure that billing for services that are
furnished is processed through the servicing hospital.
When a patient has follow-up visits with a physician in the hospital following an initial
encounter, each subsequent visit to the physician will be treated as a separate encounter
for billing.