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Why is billing code 99217 not appropriate for hospital billing?

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Why is billing code 99217 not appropriate for hospital billing?

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The internal AHCCCS work group did not feel that billing code 99217 was appropriate for hospital billing. This code is for observation care discharge day management. The is used by physicians to report if discharge is not on initial date of observation status. The codes we are using are not discharge codes but are codes for observation care and can be billed hourly by hospital. This code was considered by the internal AHCCCS workgroup, but not selected as AHCCCS is looking for hours of observation at levels of care.

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