Revenue Code 0114 is used to bill inpatient psychiatric room and board services. It applies specifically to hospitals and psychiatric facilities providing inpatient mental health care. Incorrect use of Revenue Code 0114 leads to claim denials, delayed payments, or compliance issues, especially with Medicare and Medicaid.
This guide explains what Revenue Code 0114 covers, when to use it, and how to bill it correctly for inpatient psychiatric services.
What Is Revenue Code 0114
Revenue Code 0114 represents inpatient psychiatric room and board charges. It is reported on hospital claims to identify daily accommodation costs for patients admitted for psychiatric treatment.
Revenue Code 0114 does not include professional fees, therapy services, medications, or procedures. It strictly applies to the inpatient stay portion related to psychiatric care.
When Revenue Code 0114 Should Be Used
Revenue Code 0114 is appropriate when a patient is formally admitted to an inpatient psychiatric unit or facility. Observation status does not qualify. The patient must meet inpatient admission criteria and remain under psychiatric care during the billed dates.
Use Revenue Code 0114 when:
The patient is admitted for inpatient psychiatric treatment
The stay meets medical necessity requirements
The facility is licensed to provide inpatient psychiatric services
The claim is billed for room and board only
Billing Revenue Code 0114 for partial hospitalization or outpatient mental health services is incorrect and will result in denial.
Revenue Code 0114 and Medicare Coverage Rules
Medicare has strict guidelines for inpatient psychiatric billing. Revenue Code 0114 is subject to the Medicare lifetime psychiatric benefit limit, which allows up to 190 days of inpatient psychiatric care in freestanding psychiatric hospitals.
General hospitals with psychiatric units are not subject to the 190 day limit, but medical necessity must still be clearly documented.
Medicare requires:
Physician admission orders
Active psychiatric treatment plans
Daily progress notes
Certification and recertification statements
Failure to meet these requirements can cause Medicare to deny claims billed under Revenue Code 0114.
Revenue Code 0114 vs Other Psychiatric Revenue Codes
Revenue Code 0114 is often confused with similar psychiatric billing codes. Understanding the difference is critical.
Revenue Code 0114 is used for inpatient psychiatric room and board
Revenue Code 0124 is used for general inpatient room and board
Revenue Code 0911 is used for psychiatric treatment services
Revenue Code 0900 is used for behavioral health services
Using Revenue Code 0124 instead of Revenue-Code 0114 for psychiatric admissions is a common billing error.
Documentation Requirements for Revenue-Code 0114
Strong documentation is essential to support Revenue-Code 0114 claims. Auditors focus heavily on psychiatric admissions due to higher fraud and abuse risk.
Required documentation includes:
Inpatient admission order
Psychiatric diagnosis supporting admission
Daily physician and nursing notes
Treatment plan updates
Discharge summary
Documentation must clearly show why inpatient psychiatric care was necessary instead of outpatient or partial hospitalization.
Common Revenue-Code 0114 Billing Errors
Many denials related to Revenue-Code 0114 come from avoidable mistakes.
Most common errors include:
Billing Revenue-Code 0114 for observation stays
Missing psychiatric admission orders
Using incorrect patient status codes
Billing non covered days under Medicare
Lack of daily progress documentation
Facilities should conduct internal audits to identify and correct these issues before claims submission.
Revenue-Code 0114 and Length of Stay Reviews
Payers frequently review length of stay for inpatient psychiatric admissions. Extended stays billed under Revenue-Code 0114 must be justified with detailed clinical documentation.
Each additional inpatient day must demonstrate:
Ongoing psychiatric instability
Active treatment interventions
Risk of harm to self or others
Lack of safe outpatient alternatives
Without this support, payers may deny later days of care.
Best Practices for Revenue-Code 0114 Compliance
To bill Revenue-Code 0114 correctly and reduce audit risk, follow these best practices.
Verify inpatient admission status before billing
Use Revenue-Code 0114 only for psychiatric room and board
Track Medicare psychiatric day limits
Ensure daily documentation supports medical necessity
Train billing and clinical staff regularly
Consistency between clinical notes and billing data is critical for long term compliance.
Final Thoughts on Revenue-Code 0114
Revenue-Code 0114 plays a key role in inpatient psychiatric billing, but it carries high scrutiny from payers. Misuse can quickly lead to denials, repayments, or audits.
When Revenue-Code 0114 is supported by accurate documentation and proper admission status, it allows facilities to receive appropriate reimbursement while staying compliant with Medicare and commercial payer rules.
