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Key Takeaways
- These are the two-digit CMS numbers that show where care was provided on professional claims (CMS-1500 / 837P).
- The five most common codes are POS 11 (office), POS 22 (on-campus outpatient hospital), POS 21 (inpatient hospital), POS 10 (telehealth in patient’s home), and POS 02 (telehealth elsewhere).
- POS 02 covers telehealth services provided outside the patient’s home. POS 10, effective January 1, 2022, covers telehealth provided in the patient’s home.
- Locations that are in facilities (POS 21, 22, 19, 23) pay less for the same CPT code than locations that are not facilities (POS 11, 12). This is because facilities have their own claims process.
- A denial, underpayment, or overpayment recoupment can happen if the place-of-service code is wrong. Check the payer’s policy before you file, not after.
- CMS keeps the national POS code set up to date. Codes change, and Medicaid and commercial payers may have additional requirements.
What are place of service codes in medical billing?
These are two-digit CMS codes that are put into field 24B of the CMS-1500 claim form (and the 837P electronic transaction) to let the payer know where the service was provided. The wrong codes can lead to denials, underpayments, or audit risk, and they determine which Physician Fee Schedule rate applies, whether it’s a hospital or non-facility rate. See medical billing services.
What Are the Place of Service Codes?
Place of service numbers tell the payer where the event took place. For the CMS-1500 paper claim, they go in field 24B. For the 837P electronic transaction, they go in the same field. The buyer can’t determine which fee schedule rate to use or whether the service setting matches the process paid without the correct code.
CMS keeps the national POS code set up to date, and most payers, including commercial insurers, use it. However, Medicaid programs in some states follow slightly different rules, and some private payers have their own POS standards. If you’re not sure about which code to use, always check the payer’s provider manual.
One important difference is that POS numbers only show up on business claims. UB-04 and 837I institutional claims use a different bill code. There may be two different claims for the same patient encounter: one from the professional with a POS code and one from the facility without one. Understanding how claims are processed clarifies when each claim type applies.
Complete Place of Service Codes List (2026)
Code descriptions written from the CMS Place of Service Code Set. Verified against CMS November 2026.
| Code | Name | Setting Type |
| 01 | Pharmacy | Other |
| 02 | Telehealth Provided Other than in Patient’s Home | Telehealth |
| 03 | School | Other |
| 04 | Homeless Shelter | Other |
| 05 | Indian Health Service Free-Standing Facility | Facility |
| 06 | Indian Health Service Provider-Based Facility | Facility |
| 07 | Tribal 638 Free-Standing Facility | Facility |
| 08 | Tribal 638 Provider-Based Facility | Facility |
| 09 | Prison/Correctional Facility | Other |
| 10 | Telehealth Provided in Patient’s Home | Telehealth |
| 11 | Office | Office/Home |
| 12 | Home | Office/Home |
| 13 | Assisted Living Facility | Facility |
| 14 | Group Home | Other |
| 15 | Mobile Unit | Other |
| 16 | Temporary Lodging | Other |
| 17 | Walk-in Retail Health Clinic | Other |
| 18 | Place of Employment/Worksite | Other |
| 19 | Off Campus-Outpatient Hospital | Hospital |
| 20 | Urgent Care Facility | Other |
| 21 | Inpatient Hospital | Hospital |
| 22 | On Campus-Outpatient Hospital | Hospital |
| 23 | Emergency Room-Hospital | Hospital |
| 24 | Ambulatory Surgical Center | Facility |
| 25 | Birthing Center | Facility |
| 26 | Military Treatment Facility | Facility |
| 27–30 | Unassigned | — |
| 31 | Skilled Nursing Facility | Facility |
| 32 | Nursing Facility | Facility |
| 33 | Custodial Care Facility | Facility |
| 34 | Hospice | Facility |
| 35–40 | Unassigned | — |
| 41 | Ambulance-Land | Other |
| 42 | Ambulance-Air or Water | Other |
| 43–48 | Unassigned | — |
| 49 | Independent Clinic | Other |
| 50 | Federally Qualified Health Center | Facility |
| 51 | Inpatient Psychiatric Facility | Facility |
| 52 | Psychiatric Facility Partial Hospitalization | Facility |
| 53 | Community Mental Health Center | Other |
| 54 | Intermediate Care Facility/Individuals with Intellectual Disabilities | Facility |
| 55 | Residential Substance Abuse Treatment Facility | Facility |
| 56 | Psychiatric Residential Treatment Center | Facility |
| 57 | Non-Residential Substance Abuse Treatment Facility | Other |
| 58 | Non-Residential Opioid Treatment Program | Other |
| 59 | Unassigned | — |
| 60 | Mass Immunization Center | Other |
| 61 | Comprehensive Inpatient Rehabilitation Facility | Facility |
| 62 | Comprehensive Outpatient Rehabilitation Facility | Facility |
| 63–64 | Unassigned | — |
| 65 | End-Stage Renal Disease Treatment Facility | Facility |
| 66–70 | Unassigned | — |
| 71 | Public Health Clinic | Other |
| 72 | Rural Health Clinic | Other |
| 73–80 | Unassigned | — |
| 81 | Independent Laboratory | Other |
| 82–98 | Unassigned | — |
| 99 | Other Place of Service | Other |
For FQHC billing specifics, POS 50 has its own documentation and reimbursement rules worth reviewing separately.
Most Common POS Codes Explained
POS 11: Office
The place of service code POS 11 is used the most. It covers care given in the office of a doctor or other qualified provider when the practice is not connected to a hospital. The non-facility Physician Fee Schedule rate is used to pay the professional component. This rate is higher than the facility rate because there is no separate facility claim. If the service happened in your office, use POS 11. If your business is licensed and bills as a hospital provider-based department, don’t use it.
POS 12: Home
POS 12 covers services given in the patient’s private residence, which can be a house, an apartment, or another similar private dwelling. It has a rate for non-facility services. This code is often used for home calls for chronic care management and some mental health services that are provided in the home. For home telehealth, use POS 10, not POS 12.
POS 21: Inpatient Hospital
POS 21 includes professional services provided to a patient staying as an inpatient in an acute care hospital. The professional charges the facility rate for the medical part, while the hospital charges a different fee for the facility part. This code is used by hospitalists, surgeons, consultants, and proceduralists who bill under “inpatient admission.”
POS 22: On-Campus Outpatient Hospital
POS 22 covers outpatient care in a hospital department on the hospital’s main campus. The professional is charged at the rate the facility sets. Common uses include outpatient surgery on campus, cardiology stress tests, and wound care services in a hospital-based outpatient clinic on the main campus. See POS 19 for a list of clinics owned by the hospital that are not on the main campus.
POS 19: Off-Campus Outpatient Hospital
POS 19 pays outpatient care at a hospital-owned provider-based center that is not on the main site. The facility rate is the professional rate, which is the same as POS 22. If the clinic really is provider-based and meets CMS’s standards for provider-based standing, that’s the main question. Provider-based state paperwork is required for hospital billing services in clinics the hospital owns.
POS 23: Emergency Room
Point of Sale 23 is for services provided in a hospital’s emergency room. Doctors use POS 23 when they bill EM codes during an ED visit. It’s paid at the facility rate. This code is used by doctors who work in emergency rooms, consulting specialists called the ED, and other providers who see patients only in that setting.
POS 24: Ambulatory Surgical Center
POS 24 covers procedures done in an ASC that is licensed by the state or Medicare. It is the professional who bills at the facility rate, and the ASC bills for the facility part on a separate claim. To be used correctly, the procedure must be on the ASC-covered procedure list for the payer in question. For a detailed breakdown of coverage rules, see ASC billing.
POS 31: Skilled Nursing Facility vs POS 32: Nursing Facility
POS 31 is an approved center that offers skilled nursing and recovery care that is covered by Medicare Part A or a similar plan. The POS 32 includes nursing homes that offer long-term care, but not Medicare-paid skilled care. This difference matters because the compensation rules differ significantly between the two, and mixing them up is a common reason for audits.
POS 81: Independent Laboratory
A laboratory that works on its own and is not connected to a doctor’s office or hospital is covered by POS 81. They use this code when they bill for professional services under certain molecular pathology or specialty lab codes as an independent lab. The UB-04 covers most lab billing, but the 837P with POS 81 covers some physician-supervised services performed by independent labs.
Telehealth POS Codes: POS 02 vs POS 10
The difference between POS 02 and POS 10 comes down to one question: where was the patient?
POS 02 covers telehealth services for a patient who is not at home, such as in a clinic, rural health site, or another facility, and receives care via audio or video technology. This code was used before the 2022 change.
POS 10 was added on January 1, 2022, and is used only for telehealth services provided to a patient in their home. Everything Medicare paid for over the phone before 2022 was billed as POS 02. After January 1, 2022, the applicable code depends on the patient’s location.
| POS 02 | POS 10 | |
| Patient location | Originating site other than home | Patient’s home |
| Effective date | Pre-2022 | January 1, 2022 |
| Modifier 95 | Check current PFS rule | Check current PFS rule |
For 2026 Medicare payments, check the current CY 2026 Medicare Physician Fee Schedule final rule and CMS telehealth guidance to see the correct rate and whether modifier 95 is needed for a certain type of service. These rules can change each year when the fee schedule is updated. Commercial payers and Medicaid programs may have completely different rules. Check the telehealth rules of each payer before you file.
For credentialing related to telehealth services, see telehealth credentialing requirements.
Facility vs. Non-Facility Rates: How POS Changes Payment
Depending on where the service took place, the same CPT code can be reimbursed at two different rates. A higher non-facility rate is used when the provider pays overhead costs. A lower facility rate is used when a hospital or ASC pays the overhead costs and sends a separate facility claim.
In non-facility settings, like POS 11, 12, 20, and others, there is no separate facility bill. Facilities like POS 19, 21, 22, 23, 24, 31, 52, and others like them are used for this purpose.
For example, a doctor who treats in their own office (POS 11) gets paid at the non-facility rate. The lower facility rate is given to the same doctor who does the same procedure in an outpatient department of a hospital (POS 22).
This is because the hospital bills a separate facility fee. Even though the doctor isn’t paying the hospital overhead, their total pay may still be the same. However, Medicare’s payment looks different. Before you jump to conclusions, use the CMS Physician Fee Schedule look-up tool to see the current year rates and rates that apply to your area for any given code.
POS 11 vs 22 vs 19 for Hospital-Owned Clinics
Hospital systems that employ physicians and operate outpatient clinics need to get this right every time.
| Setting | Code | Facility side bills separately? | Professional rate |
| Independent physician office | POS 11 | No | Non-facility |
| On-campus hospital-owned clinic | POS 22 | Yes (hospital) | Facility |
| Off-campus provider-based clinic | POS 19 | Yes (hospital) | Facility |
| Off-campus clinic NOT provider-based | POS 11 | No | Non-facility |
Provider-based status is the most important variable. If a hospital owns a clinic that hasn’t met CMS’s requirements for provider-based status, it must bill as POS 11. If you bill it as POS 19 without giving it the right provider-based status, you could end up overpaying and breaking the law. Check to see if the clinic is currently enrolled before giving it a code. For complicated cases involving hospital-owned clinics, hospital billing services include help with billing from providers.
Common POS Coding Errors That Cause Denials
Most of the time, a clean claim is denied or comes back with an unexpected payment adjustment because the place-of-service codes are wrong.
For some reason, telehealth is often billed as POS 11. Because that was how their billing system was set up, providers who switched to telehealth visits still filed with POS 11. Medicare says that video services must use POS 02 or POS 10, not the office code, even if the worker is in the office. Many payers stick to this rule.
Another recurring issue is provider-based clinics billed as offices. The POS should have changed to 19 or 22 when a hospital bought a doctor’s office and turned it into a provider-based business. If a practice missed that change, it would have to keep filing POS 11 and either face denials for split-billing issues or pay back the money later.
The POS not meeting the registered office address is a less obvious mistake. The claim could come back as CO-16 or CO-109 if the provider is registered with a payer at a certain address, but the POS code shows a different setting type. Claim POS codes and enrollment records need to stay in sync.
Billing for outpatient surgery is hard because POS and modifier conflicts can cause issues. Bundling denials can happen if you file a surgical procedure with POS 22 but forget to attach or attach the correct modifier. Read the instructions for modifiers GZ and modifiers XU to find out how they work with POS.
To see a list of all the denial reason codes, go to medical billing denial codes. Credex Healthcare’s denial management services address POS-related denial patterns through systematic denial resolution.
How to Choose the Correct POS Code
Every time, five questions tell you the right code.
- Where in the world was the patient when the service was given? In telehealth POS, the patient’s location, not the provider’s, matters.
- Where was the service provider? When services are provided in person, the POS is set by the service provider. For telehealth, the POS doesn’t change based on the provider’s location.
- Is the service site based on a provider? POS 19 or 22 holds true if the clinic works with a hospital as a provider. Usually, POS 11 is correct for a doctor’s office.
- What kind of service is this? If yes, were they at home (POS 10) or somewhere else (POS 02)? Does this payer require a telehealth modifier 95 or another modifier?
- What does this payer need in particular? POS rules can differ for Medicare, Medicaid, and private payers. Check the payer’s payment rules before the claim goes out if you’re not sure what to do.
Conclusion
What are place of service codes? They are a small field on a claim form that can have big effects on payment. It’s up to the coder to make sure that the claim fits the registered practice address, the service setting matches what was billed, and that you’re paid at the facility or non-facility rate. One wrong number can cause a claim to be denied, underpaid, or marked for an audit.
If your practice has had problems with POS-related denials or payment discrepancies, Credex Healthcare offers a free medical billing audit that reviews your coding patterns by place of service, identifies where mistakes occur, and fixes the workflow before you lose more money.
Frequently Asked Questions
What are place of service codes in medical billing?
You put two-digit CMS codes in field 24B of the CMS-1500 form and the 837P electronic claim. These are place-of-service codes. They tell the payer where the service was provided and which Physician Fee Schedule rate applies.
What is POS 11?
The office code is POS 11. It covers services performed in a doctor’s or other provider’s office that the provider doesn’t send to a hospital. For the same CPT code, it pays at the non-facility rate, which is usually more than the facility rate.
What is the difference between POS 22 and POS 19?
POS 22 applies to an area on the hospital’s main campus, while POS 19 applies to a provider-based clinic off campus. Each person gets paid the same amount.
What is the difference between POS 02 and POS 10?
POS 02 talks about telehealth when the patient is not at home. From January 1, 2022, POS 10 will cover telehealth when the patient is at home. Before 2022, all Medicare telehealth claims were made under the POS 02 code.
What POS code do I use for telehealth?
If the patient is not at home, use POS 02 for Medicare rather than POS 10. If the patient is at home, use POS 10. Check the telehealth billing policies of both commercial and Medicaid payers because their rules may be different.
Does the place of service code affect reimbursement?
Yes. The hospital or non-facility Physician Fee Schedule rate is used based on the POS code. There is no separate facility claim, so the non-facility rate is higher. Based on the POS code, the same CPT code can be reimbursed at two different rates.
What happens if I use the wrong POS code?
With the wrong POS code, you might get turned down, pay too little, or overpay and have to repay it in an audit later. Find the mistake, submit a revised claim with the correct POS, and make sure any related variables are consistent.
Who maintains the place of service code set?
CMS keeps the national POS code set up to date. Codes are changed from time to time. The CMS Place of Service Code Set page has the most up-to-date code set. Before you use a code that may have been added to or changed, you should always check the most recent version.
