This utilization flag is specific to observation room services. The Utilization Flag software creates 30 data elements that reveal additional information about use of health care services. All of the utilization flags use Uniform Billing (UB-04) revenue codes. Ten of the utilization flags use ICD-9-CM procedure codes. Another ten of the utilization flags use the procedure Clinical Classification Software (CCS). The remaining ten utilization flags do not use procedural information. More information on the Utilization Flags is available under Tools & Software on the HCUP-US Web site.
The utilization flag for observation services is assigned using only revenue codes and is not impacted by the switch from ICD-9-CM to ICD-10-PCS procedure coding in the fourth quarter of 2015.