Place of Service Codes in Medical Billing Guide

Place of Service codes are two-digit identifiers on every claim that tell the payer where a patient received care. That location determines how much you get paid. 

This guide provides the complete list of active POS codes, explains the critical distinction between facility and non-facility rates, and walks through the specific documentation and claim submission requirements for each setting.

The Complete List of POS Codes with Definitions

CMS currently maintains 52 active POS codes. Here is the full list with official definitions and effective dates. I pulled this directly from CMS value set documentation.

Office and Clinic-Based Codes

POS 11: Office

This is your workhorse code. Use it for a location other than a hospital, skilled nursing facility, military treatment facility, community health center, state or local public health clinic, or intermediate care facility. The health professional routinely provides health examinations, diagnosis, and treatment of illness or injury on an ambulatory basis from this location.

POS 49: Independent Clinic

Use this code for a location not part of a hospital or physician office where health professionals provide diagnostic, therapeutic, and rehabilitation services on an ambulatory basis.

POS 50: Federally Qualified Health Center

This code applies to facilities that receive funding under Section 330 of the Public Health Service Act. FQHCs provide comprehensive primary care services in underserved areas.

POS 71: State or Local Public Health Clinic

Use this code for facilities operated by state or local health departments that provide preventive and primary care services.

POS 72: Rural Health Clinic

This code applies to clinics certified to provide primary care services in rural areas designated as health professional shortage areas.

Hospital Based Codes

POS 19: Off Campus Outpatient Hospital

This is a portion of an off-campus hospital provider based department. It provides diagnostic, therapeutic including surgical and nonsurgical, and rehabilitation services to patients who do not require hospitalization. This code became effective January 1, 2016.

POS 21: Inpatient Hospital

Use this code for a facility other than psychiatric which primarily provides diagnostic, therapeutic, and rehabilitation services under physician supervision to patients admitted for various medical conditions.

POS 22: On Campus Outpatient Hospital

This is a portion of a hospital main campus which provides diagnostic, therapeutic, and rehabilitation services to patients who do not require hospitalization. The description changed effective January 1, 2016 to distinguish on campus from off campus locations.

POS 23: Emergency Room Hospital

Use this code for a portion of a hospital where emergency diagnosis and treatment of illness or injury is provided.

Telehealth Codes

POS 02: Telehealth Provided Other Than in Patient Home

This code applies when health services are provided or received through telecommunication technology and the patient is NOT located in their home. The patient could be at a clinic, hospital, school, or other facility. This code became effective January 1, 2017. The description changed effective January 1, 2022 and became applicable for Medicare on April 1, 2022.

POS 10: Telehealth Provided in Patient Home

This code applies when health services are provided or received through telecommunication technology and the patient IS located in their home. Home means a private residence not a hospital or other facility. This code became effective January 1, 2022 and became available to Medicare on April 1, 2022.

Residential and Facility Based Codes

POS 12: Home

This is a location other than a hospital or other facility where the patient receives care in a private residence.

POS 13: Assisted Living Facility

This is a congregate residential facility with self-contained living units. It provides assessment of each resident needs and onsite support 24 hours a day seven days a week. The facility has the capacity to deliver or arrange for services including some health care.

POS 14: Group Home

This is a residence with shared living areas where clients receive supervision and other services including social or behavioral services, custodial service, and minimal services like medication administration. The description was revised effective April 1, 2004.

POS 31: Skilled Nursing Facility

Use this code for a facility that primarily provides inpatient skilled nursing care and related services to patients who require medical or nursing care but not hospital level care.

POS 32: Nursing Facility

This code applies to a facility that primarily provides inpatient nursing care and related services to patients who require long term care but not hospital level care.

Other Important POS Codes

POS 01: Pharmacy

Use this code for a facility or location where drugs and other medically related items and services are sold, dispensed, or otherwise provided directly to patients. This became effective October 1, 2003 and was revised effective October 1, 2005.

POS 03: School

This is a facility whose primary purpose is education.

POS 04: Homeless Shelter

This is a facility whose primary purpose is to provide temporary housing to homeless individuals including emergency shelters and family shelters.

POS 09: Prison or Correctional Facility

Use this code for a prison, jail, reformatory, work farm, detention center, or any similar facility maintained by federal, state, or local authorities for confinement or rehabilitation of adult or juvenile criminal offenders. This became effective July 1, 2006.

POS 15: Mobile Unit

This is a facility or unit that moves from place to place equipped to provide preventive, screening, diagnostic, or treatment services. Special rules apply. If the mobile unit serves an entity with an existing POS code like a skilled nursing facility, use that entity code instead of 15.

POS 17: Walk in Retail Health Clinic

This is a walk in health clinic located within a retail operation that provides preventive and primary care services on an ambulatory basis. It is distinct from an office, urgent care facility, pharmacy, or independent clinic. This code became available for use May 1, 2010.

POS 20: Urgent Care Facility

This is a location distinct from a hospital emergency room, an office, or a clinic. Its purpose is to diagnose and treat illness or injury for unscheduled ambulatory patients seeking immediate medical attention.

POS 24: Ambulatory Surgical Center

Use this code for a facility that provides surgical services to patients who do not require hospitalization.

POS 34: Hospice

Use this code for a facility that provides palliative and supportive care to terminally ill patients and their families.

Facility Versus Non-Facility Payment Rates

This section alone could save your practice thousands of dollars. The distinction between facility and non-facility rates matters more than most billers realize.

What Is the Non-Facility Rate?

The non facility rate applies when you provide services in your own office or clinic where you pay the overhead. This rate includes payment for your practice expenses including rent, utilities, equipment, and staff salaries.

POS codes that get the non-facility rate include:

What Is the Facility Rate?

The facility rate applies when you provide services in a hospital or institutional setting where the facility pays the overhead. This rate is lower because it only covers the professional component of the service. The facility separately bills for its own costs.

POS codes that get the facility rate include:

Impact of Choosing the Wrong Rate

Suppose you bill CPT 99213 for an established patient office visit. The non facility rate under Medicare might be around 90 dollars. The facility rate for that same code might be around 50 dollars.

If you accidentally bill POS 22 instead of POS 11, you just lost 40 dollars on that claim. Multiply that by 100 claims per month and you lose 4,000 dollars. Multiply by 12 months and you lose 48,000 dollars. All because of two digits.

This is not theoretical. I have audited practices where this exact error happened regularly. The billers did not understand that POS 19 and POS 22 are facility codes. They thought any outpatient service should use 22. Their claims paid at the lower rate for years before anyone caught it.

Telehealth POS Codes: 02 Versus 10 and the 2026 Updates

Telehealth billing has gotten more complex with the addition of POS 10. You need to know the difference.

POS 02: Patient Not at Home

Use POS 02 when you provide a telehealth service and the patient is located somewhere other than their home. This includes:

POS 10: Patient at Home

Use POS 10 when you provide a telehealth service and the patient is located in their own home. CMS introduced this code effective January 1, 2022. Medicare began accepting it on April 1, 2022.

For 2026, telehealth service codes are now considered permanent unless removed. POS 10 and POS 02 remain the standard codes for telehealth billing. You also need to append modifier 95 for most telehealth claims, though some payers still want modifier GT.

Common Telehealth Billing Errors

The biggest error I see is using POS 02 for every telehealth visit regardless of where the patient sits. If the patient is at home, you must use POS 10. Period.

Another error is forgetting that some payers have different telehealth requirements. Medicare accepts POS 02 and 10 with modifier 95. Some commercial payers want POS 02 with modifier GT. Some want POS 11 with modifier 95 for telephone visits. You need a payer-by-payer cheat sheet.

Federally Qualified Health Centers and Rural Health Clinics may continue billing telehealth via G2025 through December 31, 2026.

Where POS Codes Go on Your Claim Forms

Knowing the codes is not enough. You need to put them in the right place on your claim forms.

CMS 1500 Paper Claim Form

On the paper CMS 1500 form, the POS code goes in box 24B. This is the shaded box in the middle of the service line area. Each line of service can have its own POS code if services were provided at different locations.

Electronic 837P Claims

On electronic claims, the POS code goes in the SV1 or SV3 segment for each service line. The exact location depends on your billing software, but your clearinghouse or practice management system should map it correctly.

Provider Address Requirements

Here is a detail that causes denials. When you use POS 11 for an office visit, the address in box 32 of the CMS 1500 form must match the physical address of that office in the payer system.

Anthem FEP specifically flags claims where box 32 does not match the provider record. Mismatched addresses trigger ineligible reimbursement determinations. The same applies to POS 22 for outpatient hospital services. The address must align with the facility.

Box 33 must contain a physical address not a PO Box. If you use a PO Box for billing, your claims may reject.

Payer Specific Considerations and Contract Variations

Medicare sets the baseline, but every payer can have its own rules. You need to check each contract.

Medicare POS Rules

Medicare follows the CMS POS code set exactly. The codes listed above with their definitions are what Medicare expects. However, Medicare has additional rules for specific situations.

For mobile units, if the unit serves an entity that already has a POS code like a skilled nursing facility, use that entity code not 15.

For homeless shelters, DME claims require special handling. A homeless shelter crosswalk to office for most services but local contractors may adjust this for DME.

Medicaid State Specific Codes

Medicaid programs follow CMS codes but may restrict certain codes for specific service types.

For example, Wisconsin ForwardHealth allows POS 04, 12, and 99 for natural environment enhanced reimbursement when providing Birth to 3 Program services. These codes require a specific modifier to qualify.

For outpatient mental health in Wisconsin, not every POS code is allowed for every procedure code. Providers must use the POS code that most accurately describes the service location.

Commercial Payer Variations

Some commercial payers do not recognize POS 19 and 22 as distinct codes. They only use 22 for all outpatient hospital services. Others have adopted the CMS distinction fully.

Some payers require modifier 95 with POS 02 for telehealth. Others want modifier GT. A few still want POS 11 with a telehealth modifier for telephone visits.

The only way to know is to check each payer contract and any subsequent policy updates. Build a reference document for your top ten payers and keep it updated.

Common POS Coding Mistakes That Trigger Denials

Mistake 1: Using POS 11 for Hospital Based Services

If you are a physician who sees patients in a hospital outpatient department but bills as a professional service, your POS code should be 19 or 22 not 11. Using 11 for a hospital service is incorrect and will trigger a denial or a down-coding.

Mistake 2: Using POS 22 for Off-Campus Services

CMS created POS 19 specifically for off campus hospital outpatient departments. If you use POS 22 for an off-campus location, you are using the wrong code. This matters for reimbursement calculations and for site of service audits.

Mistake 3: Using Old Telehealth Codes

Before 2022, telehealth claims used POS 02 for all remote services. Now you must distinguish between home and non-home locations. POS 02 is for non-home. POS 10 is for home. Using POS 02 for a patient at home is incorrect.

Mistake 4: Forgetting That Each Service Line Can Have a Different POS

If a patient has a procedure in the office and a separate service at a hospital on the same day, each service line needs its own POS code. You cannot put one code on the entire claim.

Mistake 5: Address Mismatches

This one is pure administrative error but it happens constantly. The address in box 32 must match what the payer has on file for that POS code. If your office moved and you did not update your provider enrollment, claims will deny.

How to Audit Your Own POS Coding

You do not need to wait for a payer audit. You can check your own claims for POS errors.

Step 1: Run a POS Code Report

Pull a report from your practice management system showing all claims from the last 90 days. Group them by POS code. Look for codes that appear rarely or codes that appear too frequently.

Step 2: Compare POS to Service Type

For each group, check whether the POS code makes sense for the service. For example, if you see POS 21 on a claim for a routine office visit, investigate.

Step 3: Check Facility Versus Non-Facility Payments

Pull a sample of claims for a common CPT code like 99213. Compare the allowed amount for POS 11 claims to the allowed amount for POS 19 or 22 claims. If you see a significant difference, you may have mis-coded POS on some claims.

Step 4: Verify Addresses

For your top three POS codes, verify that the address in your practice management system matches the address in each payer system. Update any mismatches.

Step 5: Review Telehealth Coding

If you bill telehealth services, run a report showing POS 02 and POS 10 claims. Pull a sample of charts and verify that the patient location documented matches the POS code used.

Recent and Upcoming Changes to POS Codes

CMS updates the POS code set regularly. Staying current prevents denials.

2022 Telehealth Split

The biggest recent change was splitting telehealth into POS 02 and POS 10. This took effect January 1, 2022, with Medicare implementation on April 1, 2022.

2016 Off Campus Outpatient Distinction

CMS created POS 19 effective January 1, 2016, to distinguish off campus hospital outpatient departments from on-campus locations. This change responded to the 2015 Bipartisan Budget Act which changed payment for off-campus provider-based departments.

Future Changes to Watch

CMS regularly reviews the POS code set and accepts public comments. You can send comments or requests to posinfo@cms.hhs.gov.

Conclusion

POS codes seem like a small detail. But small details add up to big revenue losses when they go wrong.

Print out the POS code list and keep it at every billing station. Train your billers on the difference between facility and non-facility rates. Build a telehealth decision tree that helps staff choose between POS 02 and POS 10.

Audit your own claims quarterly. Run a report of claims by POS code and look for anything unusual. Check a sample of claims to verify that the documentation supports the code used.

Keep your provider addresses updated with every single payer. A mismatch between box 32 and the payer system will kill an otherwise clean claim every time.

And when in doubt, check the official CMS Place of Service Code Set.

The two-digit code you put in box 24B tells the payer where you worked. Make sure it tells the truth. Your revenue depends on it.

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