Extended Recovery vs. Observation

Hello,

We recently opened a new Cath Lab, and some of the patients are going to ICU after their Cath procedure. We received from Medicare claims back for charging Observation after the procedure. The explanation is that when they are considered outpatient procedures, then Observation status should not follow, but should be discharged. If the patient is being monitored following the procedure, then we are to develop an "Extended Recovery" charge, with the UB rev code the same as we would bill out for PACU time. Has anyone developed such a charge?

Thank you in advance,
Jacob Chavez