Place of Service 22 in Medical Billing: What You Really Need to Know
Place of Service (POS) 22 refers to Outpatient Hospital services in medical billing. It is used when healthcare services are provided in a hospital's outpatient department. Correctly using POS 22 ensures accurate reimbursements and compliance with payer policies, especially Medicare and commercial insurers.
When dealing with CPT codes, modifiers, and payer rules, it’s easy to overlook small codes like POS 22. But don’t be fooled—Place of Service 22 plays a big role in how claims are billed and reimbursed. Using the wrong POS code can lead to denials, delays, or even audits.
At Revantage Healthcare, we help providers understand important billing concepts like site of service codes. In this blog, we’ll explain what POS 22 means, how it compares with other POS codes, and how to avoid common billing mistakes.
What Are Place of Service (POS) Codes?
Place of Service codes (also called POS codes) are two-digit numbers added to claims to show where a medical service was given. These codes help insurance companies decide how to pay for a service.
Each code stands for a specific location, like:
-
A doctor’s office (POS 11)
-
A hospital (POS 21)
-
A patient’s home (POS 12)
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A hospital outpatient center (POS 22)
-
A skilled nursing facility (POS 31)
What Is POS 22?
POS 22 stands for On Campus–Outpatient Hospital. This means the patient came to a hospital’s main campus for care but was not admitted. These are outpatient services done in a hospital-owned facility.
Examples:
-
A patient gets an X-ray and goes home the same day
-
Physical therapy done in the hospital’s rehab department
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A doctor sees the patient in a hospital-owned specialty clinic
POS 22 is used when care happens inside a hospital but does not require staying overnight.
POS 22 vs POS 11 vs POS 21: What’s the Difference?
Let’s compare three common place of service codes:
POS 21 is for inpatient stays, POS 11 is for privately-owned clinics, and POS 22 is for hospital-run outpatient care.
| POS Code | Setting | Admitted? | Owned By | Example |
|---|---|---|---|---|
Place of Service 11 (POS 11) |
Doctor’s Office | No | Physician | Regular checkup at a private clinic |
Place of Service 21 (POS 21) |
Inpatient Hospital | Yes | Hospital | Admitted for pneumonia for 3 days |
Place of Service 22 (POS 22) |
Outpatient Hospital (On Campus) | No | Hospital | Same-day procedure at hospital facility |
Why Getting POS 22 Right Is So Important
Using the correct POS code ensures:
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Accurate reimbursement
-
Fewer claim denials
-
Compliance with payer rules
If you bill a POS 22 service as POS 11, it could result in overpayment and an audit. Medicare and commercial payers track this closely.
What Is Split Billing in POS 22?
In POS 22, billing often happens through a split model:
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The provider bills for the professional service
-
The hospital bills for the facility, staff, equipment, etc.
This setup is different from POS 11, where the physician bills for everything. If split billing isn’t used properly, claims can be denied or underpaid.
Learn how: Revantage handles compliant medical billing
Medicare Payment Rates for POS Codes
Medicare reimburses differently based on the place of service code:
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POS 11 (Office): Paid at a non-facility rate (higher because it includes clinic overhead)
-
POS 22 (Hospital Outpatient): Paid at a facility rate (lower, as the hospital bills separately)
Using POS 11 when POS 22 is correct can cause overpayments and compliance issues.
Other Common POS Codes You Should Know
Here are more place of service codes providers frequently encounter:
-
-
Place of Service 12 (POS 12): Patient’s Home
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Place of Service 13 (POS 13): Assisted Living Facility
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Place of Service 19 (POS 19): Off-Campus Outpatient Hospital
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Place of Service 20 (POS 20): Urgent Care Facility
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Place of Service 23 (POS 23): Emergency Room (Hospital)
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Place of Service 24 (POS 24): Ambulatory Surgical Center
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Place of Service 31 (POS 31): Skilled Nursing Facility (SNF)
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Place of Service 32 (POS 32): Nursing Facility
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Place of Service 33 (POS 33): Custodial Care Facility
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Place of Service 49 (POS 49): Independent Clinic
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Place of Service 50 (POS 50): Federally Qualified Health Center
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Place of Service 51 (POS 51): Inpatient Psychiatric Facility
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Place of Service 65 (POS 65): ESRD Treatment Facility
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Place of Service 72 (POS 72): Rural Health Clinic
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Place of Service 81 (POS 81): Independent Laboratory
-
Top Mistakes to Avoid with POS 22
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Using POS 11 for hospital-owned clinics
➤ If the clinic is on a hospital’s main campus and hospital-owned, use POS 22. -
Billing with non-facility rate
➤ POS 22 requires using the facility rate. -
Mixing up POS 19 and POS 22
➤ POS 19 = hospital-owned but off-campus
➤ POS 22 = hospital-owned and on-campus -
Skipping front-office training
➤ Your registration and scheduling team must know how to select the right POS code.
How Different Payers Handle POS 22
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Medicare: Requires split billing
-
Medicaid: Rules vary by state
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Commercial Payers: May need specific modifiers or pre-approval
For example:
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Blue Cross might pay less for POS 22
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UHC could deny the claim if documentation doesn’t support the location
-
Cigna may ask for extra proof when POS 22 is used
Final POS 22 Checklist
Is the service on the main hospital campus?
Is the setting hospital-owned and operated?
Is it outpatient care (not admitted)?
Are you using the facility fee schedule?
Is split billing being applied correctly?
Have you verified payer-specific POS requirements?
Need Help with POS Codes or Billing Accuracy?
Revantage Healthcare offers expert support with medical billing, place of service coding, and payer compliance. Whether you’re confused between POS 22, POS 19, or POS 81 in medical billing, we’re here to help you get it right from day one.
Learn more: Revantage Healthcare Medical Coding Services | Certified Coding Specialist in Taxes
Learn More: Common Medical Billing and Insurance Terms You Should Know
Learn more: Best Medical Coding Services – HIPAA compliance – Revantage Healthcare
Complete Guide to Medical Billing & Coding Services – 2025
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