II.I.1

Admission Following Medical Observation

When a patient is admitted to an observation unit for a medical condition, which either worsens or does not improve, and is subsequently admitted as an inpatient of the same hospital for this same medical condition, the principal diagnosis would be the medical condition which led to the hospital admission.

ICD-10-CM Official Guidelines for Coding and Reporting, FY 2026 (effective October 1, 2025). Published by CMS and NCHS. Reproduced for reference — always verify against the official CMS release.