There is only one code for observation day discharge management, 99217. Unlike discharge day management from inpatient status or nursing homes, there are not two levels based on time. Use 99217 no matter how long the discharge takes.
The patient status must be Observation status to use this code. If the patient status has changed to inpatient status during their stay, do not use this code. A physician may not use 99217 with any other E/M service on that calendar date: observation or inpatient admission, office visit, subsequent hospital visit. For patients admitted and discharged on the same calendar date, see codes 99234-99236, and see the Codapedia article related to observation admissions.
A physician may not bill for discharge from observation status and admission to inpatient status on the same calendar date. Both are not payable.