R 418.10923b
R 418.10923b Billing for ambulatory surgery center (ASC) or freestanding surgical outpatient facility (FSOF).
Cite as Mich. Admin. Code R 418.10923b
Rule 923b. (1) An ASC or FSOF shall be licensed by the Michigan department of licensing
and regulatory affairs under part 208 of the code or if it has an agreement with the centers for
Medicare and Medicaid services (CMS) to participate in Medicare. The owner or operator of the
facility shall make the facility available to other physicians, dentists, podiatrists, or providers
who comprise its professional staff. The following apply:
(a) When a surgery procedure is appropriately performed in the ASC or FSOF and CMS has
not assigned a payment code for that procedure, the procedure shall be considered BR.
(b) The ASC or FSOF shall be reimbursed the maximum allowable paid for the payment
code, taking into consideration the multiple procedure rule for facilities as defined by CMS.
(2) Billing instructions in this rule do not apply to a hospital-owned freestanding surgical
outpatient facility billing with the same tax identification number as the hospital.
(3) An ASC or FSOF shall bill the facility services on the CMS 1500 claim form and shall
include modifier SG to identify the service as the facility charge. The place of service shall be
"24." The appropriate HCPCS or CPT procedure code describing the service performed shall be
listed on separate lines of the bill.
(4) Modifier 50, generally indicating bilateral procedure, is not valid for the ASC or FSOF
claim. Procedures performed bilaterally shall be billed on 2 separate lines of the claim form and
shall be identified with modifiers, LT for left and RT for right.
(5) An ASC or FSOF shall only bill for outpatient procedures that, in the opinion of the
attending physician, can be performed safely without requiring inpatient overnight hospital care
and are exclusive of such surgical and related care as licensed physicians ordinarily elect to
perform in their private offices.
(6) The payment for the surgical code includes the supplies for the procedure.
(7) Durable medical equipment, the technical component (-TC) of certain radiology
services, certain drugs, and biologicals that are allowed separate payment under the outpatient
prospective payment system (OPPS) will be provided separate from the rules on the agency’s
website, www.michigan.gov/wca.
(8) Items implanted into the body that remain in the body at the time of discharge (such as
plates, pins, screws, mesh) from the facility are reimbursable when they are designated by CMS
as pass through items. These pass through items will be provided separate from these rules on the
agency’s website, www.michigan.gov/wca. The facility shall bill implant items with the
appropriate HCPCS code that is reimbursable under the OPPS. A report listing a description of
the implant and a copy of the facility's cost invoice, including any full or partial credit given for
the implant, shall be included with the bill.
(9) Those radiological services that are allowed separate payment under the OPPS will be
provided separate from the rules on the agency’s website, www.michigan.gov/wca. When
radiology procedures are performed intraoperatively, only the technical component shall be
billed by the facility and reimbursed by the carrier. The professional component shall be
included with the surgical procedure. Pre-operative and post-operative radiology services may be
globally billed.
(10) At no time shall the ASC or FSOF bill for practitioner services on the facility bill.
(11) When an allowed drug or biological, provided separate from these rules on the
agency’s website, www.michigan.gov/wca, is billed by the ASC or FSOF, it shall be listed by the
appropriate HCPCS or CPT procedure code. All of the following apply:
(a) Each allowable drug or biological shall be listed on a separate line.
(b) Units administered shall be listed for each drug or biological.
(c) A dispense fee shall not be billed.