Place of service codes are two-digit codes used in professional claims to identify where the healthcare service was rendered. This guide covers why precise POS codes matter and provides a CMS POS code list. Additionally, POS 02 vs. 10, POS 11 & 22, and other POS codes are covered in detail. CMS-1500 Item 24B instructions vary compared to UB-04 and is a part of avoiding the most common POS billing mistakes.
Place of service codes, or POS codes, are two-digit codes that indicate where a particular healthcare service was provided to the patient. The detail is typically reviewed in connection with a professional claim.
Place of service codes in medical billing indicate the place where services or care were provided to a patient so that rightful reimbursement may be collected. This may be in a physician’s office, hospital, the patient’s home, or another suitable location. POS codes in medical billing matter because they determine how claims are processed and reimbursed.
Proper POS coding ensures claims are processed, reimbursed, and paid according to payer requirements and regulations. Conversely, an incorrect code can cause denials or payment discrepancies.
Some commonly used POS codes are:
- POS 11 (office visit)
- POS 21 (inpatient hospital)
- POS 22 (on-campus outpatient hospital)
- POS 02 and POS 10 (telehealth)
Importance of POS Codes for Healthcare Providers
POS codes answer one question: Where was the service delivered to the patient? And some newer billers assume POS information is sufficient for billing.
However, these codes do not describe the procedure or prove medical necessity. Simply put, the POS codes in medical billing work alongside Current Procedural Terminology (CPT) or Healthcare Common Procedure Coding System (HCPCS) codes and documentation.
Using POS codes incorrectly is like any other medical billing error. Wrongfully used POS information can trigger claim rejections, denials, payment discrepancies, and compliance concerns.
Under the Medicare Physician Fee Schedule (MPFS), a POS code decides whether the facility or non-facility rate applies. Billers should know that the facility rate is typically lower, but facilities are paid separately. Other payers may differ, so billers should always check each payer’s policy.
The code must match the actual care setting, the documentation, and payer instructions. Billing managers should therefore include POS accuracy in coding audits and claim quality checks. Once billers understand the importance of POS codes, they never overlook them.
Complete List of Place of Service Codes in Medical Billing
The tables follow the Centers for Medicare & Medicaid Services (CMS) Place of Service Code Set for professional claims (updated May 2, 2024; page last modified February 17, 2026).
CMS advises checking payer policies and sending billing questions to your Medicare Administrative Contractor (MAC). Verify every code against the current CMS page before use.
| Categories | POS Codes | Official CMS Descriptions |
|---|---|---|
| Telehealth | 02 | Telehealth Provided Other than in a Patient’s Home |
| 10 | Telehealth Provided in a Patient’s Home | |
| 05 | Indian Health Service Free-standing Facility | |
| 06 | Indian Health Service Provider-based Facility | |
| 07 | Tribal 638 Free-standing Facility | |
| 08 | Tribal 638 Provider-based Facility | |
| Office & Clinics | 11 | Office |
| 17 | Walk-in Retail Health Clinic | |
| 20 | Urgent Care Facility | |
| 49 | Independent Clinic | |
| 50 | Federally Qualified Health Center | |
| 71 | Public Health Clinic | |
| 72 | Rural Health Clinic | |
| Home & Community | 03 | School |
| 04 | Homeless Shelter | |
| 09 | Prison/Correctional Facility | |
| 12 | Home | |
| 13 | Assisted Living Facility | |
| 14 | Group Home | |
| 15 | Mobile Unit | |
| 16 | Temporary Lodging | |
| 18 | Place of Employment-Worksite | |
| 27 | Outreach Site/Street | |
| Hospital & Surgical | 19 | Off Campus-Outpatient Hospital |
| 21 | Inpatient Hospital | |
| 22 | On Campus-Outpatient Hospital | |
| 23 | Emergency Room, Hospital | |
| 24 | Ambulatory Surgical Center | |
| 25 | Birthing Center | |
| 26 | Military Treatment Facility | |
| Nursing & Long-Term Care | 31 | Skilled Nursing Facility |
| 32 | Nursing Facility | |
| 33 | Custodial Care Facility | |
| 34 | Hospice | |
| 54 | Intermediate Care Facility/Individual with Intellectual Disabilities | |
| Behavioral Health & Rehabilitation | 51 | Inpatient Psychiatric Facility |
| 52 | Psychiatric Facility-Partial Hospitalization | |
| 53 | Community Mental Health Center | |
| 55 | Residential Substance Abuse Treatment Facility | |
| 56 | Psychiatric Residential Treatment Center | |
| 57 | Non-residential Substance Abuse Treatment Facility | |
| 58 | Non-residential Opioid Treatment Facility | |
| 61 | Comprehensive Inpatient Rehabilitation Facility | |
| 62 | Comprehensive Outpatient Rehabilitation Facility | |
| 65 | End-Stage Renal Disease Treatment Facility | |
| 66 | Program of All-Inclusive Care for the Elderly (PACE) Center | |
| Other Settings | 01 | Pharmacy |
| 41 | Ambulance, Land | |
| 42 | Ambulance, Air or Water | |
| 60 | Mass Immunization Center | |
| 81 | Independent Laboratory | |
| 99 | Other Place of Service |
The above table covers the most common and widely used POS codes assigned by CMS. But a few more codes are considered uncategorized. These include:
| Status | POS Codes |
|---|---|
| Unassigned | 28–30, 35–40, 43–48, 59, 63–64, 67–70, 73–80, 82–98 |
These unassigned codes are subject to change and may be updated at CMS’ discretion. Therefore, billers must review and verify the latest codes before billing them.
Important Differences Between Place of Service Codes
Although place of service codes in medical billing generally indicate the same thing, not every code is identical. CMS differentiates POS codes, and billers or practices should know these differences.
Mixing, interchangeably reporting, or appending these codes wrongfully can lead to claim errors and delays.
POS 02 vs. POS 10
POS 02 indicates that the patient is not at home while receiving telehealth services from an assigned healthcare provider. POS 10 reports that the patient is at home and the home is the place of service for telehealth.
By CMS’ definition, home is the place where the patient lives, not the hospital. This distinction matters because it can result in poor reimbursement or revenue loss.
| POS 02 | POS 10 | |
|---|---|---|
| Patient Location | Anywhere except home. | Home (private residence). |
| Medicare Payment | Facility rate. | Non-facility rate. |
| Example | Video visit from a clinic room. | Video visit from the living room. |
According to CMS guidance, Medicare will pay POS 10 telehealth at the non-facility MPFS rate beginning on January 1, 2024. Telehealth policies keep changing, which impacts reimbursement.
So, billers should visit CMS’ telehealth page and check payer policies at the time of billing. We also suggest reviewing the telehealth billing guidelines 2026 for more details.
POS 19 vs. POS 22
Both POS 19 and 22 indicate hospital outpatient sites. POS 19 refers to an off-campus provider-based department. POS 22, on the other hand, is reported for an on-campus service within the hospital.
If there is any confusion, billers should confirm the status without deciding based on location alone.
POS 21 vs. POS 22
POS codes 21 and 22 cover entirely different situations in medical billing. POS 21 applies to admitted patients, while POS 22 is used to bill outpatient visits within the hospital’s on-campus department (patients who do not need to be admitted).
This difference between 21 and 22 is often overlooked, which creates billing errors. Billers should check the hospital record for admission status to avoid confusion. For situations where there is ambiguity (such as in observation), the payer or MAC’s policy should be used for billing guidance.
POS 31 vs. POS 32
According to CMS, POS 31 is an inpatient facility primarily providing skilled nursing care services. However, to be eligible for POS 31, the services should fall below the level of hospital care.
POS 32 is a facility providing skilled nursing care or regular health-related services to residents above the custodial level. To ensure billing accuracy, billers should report the facility’s classification (not the patient’s apparent needs) to verify the facility type directly.
POS 11 and POS 22
POS 11 indicates an office-based place of service. Whereas POS 22 is a setting within the main hospital campus. With MPFS, facility reimbursement tends to pay the professional less. Thus, using POS 11 for a hospital outpatient service may be considered an overpayment.
How to Select the Correct POS Code on a CMS-1500 Claim?
Now that we have covered and compared the POS codes in medical billing, billers should know how to select them. POS codes are entered in the CMS-1500 form, but knowing the correct section matters.
The code should be recorded in section 24B of the CMS-1500 form. But even that follows a structured process. The billing team should:
- Review the encounter document for the place of service.
- Identify the institution type, its classification, and the status of the patient.
- Match the place of service to the CMS POS code set.
- Review and follow any payer guidelines regarding the billing procedure. This is an important step because CMS sends coding questions to the MAC.
However, this process applies only to the professional claims. Reporting services for institutional claims work differently. For institutional claims, the billers must use the UB-04 form, Type of Bill, and revenue codes.
Common POS Code Errors and How to Avoid Them
Billing teams can face challenges even when they follow best practices for reporting place of service codes in medical billing. Some common errors may include:
1. Using Office POS Code for an Outpatient Visit
Code 11 is for offices, and POS 19 or 22 is for hospital outpatient services. Confirm it through facility registration information.
2. Using POS 02 and POS 10 Incorrectly
The patient’s location determines the correct place of service code used in billing. The applicable POS code should be consistently recorded in each telehealth record too.
3. Using POS 31 and 32 Incorrectly
For POS 31 and 32, the type of nursing facility where a healthcare provider renders services matters. Thus, billers should maintain a validated list of nursing facilities the provider visits.
4. Selecting POS 99 Right Away
CMS defines code 99 as “Other,” indicating that no other code can identify the place of service. But billers should confirm that another code (such as 17, 18, 27, or 49) does not apply before selecting code 99.
5. Leaving Billing System Defaults As Is
Default location repeats the obsolete code in every claim. Verify your defaults with a change in service location.
How Does Accurate POS Coding Support RCM?
Place of service codes in medical billing are integral for accurate revenue cycle management (RCM). Correct POS codes in medical billing ensure accurate claim submission, accurate reimbursements, and fewer compliance audits.
If you face trouble using POS codes, you can:
- Track denials and payment variances based on service and location misreporting.
- Conduct claim audits to compare POS information against the encounter and identify mistakes.
- Provide training for similar codes and document the payer’s guidelines.
Correct POS coding matters for compliant billing but does not ensure complete payment. This is because other billing requirements such as coverage, medical necessity, documentation, and the payer’s guidelines affect reimbursement.
Professional medical billing services from third-party billing companies are a great option for practices that seek assistance with claim quality, denial tracking, and POS coding.
