UB04 Revenue Code Code 0720: Labor Room/Delivery

Revenue Code 0720 is the general code under the 072X series for Labor Room/Delivery services on the UB‑04 claim form. According to the Noridian Revenue Codes list, the 072X series includes 0720 General, 0721 Labor, 0722 Delivery, 0723 Circumcision, 0724 Birthing center, and 0729 Other ^[1]. Code 0720 is used when the service provided does not fit into a more specific sub‑code (e.g., labor only or delivery only) or when billing for a bundled labor/delivery room stay.

When to Use

Use Revenue Code 0720 when billing for a labor room or delivery room encounter that is not separately broken out into labor-only (0721) or delivery-only (0722) sub‑codes. For example, when a patient is admitted to a labor room and later the same room is used for delivery without a room change, a single charge under 0720 (General) is appropriate. The Noridian list shows that 0721 and 0722 are available for separate billing of labor and delivery phases, but if the facility’s charging system does not differentiate, 0720 serves as the default ^[1]. Code 0720 should not be used for circumcision (0723), birthing center services (0724), or “other” obstetric procedures (0729); those have their own designated codes. Always verify payer‑specific requirements, as some payers may prefer the more granular sub‑codes to validate medical necessity for vaginal versus cesarean deliveries or to track labor time for observation status.

Step-by-Step Claim Example

Scenario: A hospital admits a patient for a planned vaginal delivery. The patient is placed in a labor/delivery room at 8:00 AM. She delivers at 2:00 PM and remains in the same room until transfer to postpartum at 4:00 PM. The facility charges a flat rate for the combined labor/delivery room use.

Step 1 – Complete claim header: Enter patient demographics, admission date (08:00 on date of admission), discharge date (if inpatient), and provider information on the UB‑04.

Step 2 – Form Locator 42 – Revenue Code: In the first line of the revenue code section, enter 0720 (General – Labor Room/Delivery). Do not enter 0721 or 0722 because the charge is for the combined use.

Step 3 – Form Locator 43 – Description: Enter a brief description such as “LABOR/DELIVERY ROOM – FLAT RATE.” While some payers do not require description, it helps with manual review.

Step 4 – Form Locator 44 – HCPCS/Rates: Leave blank unless the payer requires a HCPCS code (e.g., S5900 for labor/delivery room charges). Most payers accept just the revenue code and charge.

Step 5 – Form Locator 45 – Service Date: Enter the date(s) of service. For a single‑day stay, enter the same date for the from and through fields. If the labor spans midnight, use the first date.

Step 6 – Form Locator 46 – Units: Enter 1 (unit) if billing a flat rate. If billing by the hour, enter the number of hours (e.g., 8).

Step 7 – Form Locator 47 – Total Charges: Enter the total charge for the labor/delivery room (e.g., $2,500.00).

Step 8 – Additional lines: If the claim has more than 22 revenue code lines, MassHealth instructs outpatient providers to bundle services; inpatients must submit electronically if over 22 lines ^[2]. Here, add other revenue codes for nursery (017X), pharmacy (025X), or anesthesia (037X) on subsequent lines.

Step 9 – Submit: Paper claims must be sent to the appropriate MassHealth address or submitted electronically if a waiver was not obtained ^[2].

Common Mistakes & Audit Red Flags

• Using 0720 when a more specific code exists. For instance, billing 0720 for a circumcision performed in the delivery room – that service should use 0723 (Circumcision) ^[1]. Payers may deny or downcode the claim if the service description is ambiguous.

• Billing duplicate labor/delivery charges. If a patient is transferred from a labor room (0721) to a separate delivery room (0722), both codes can be used. Using 0720 for the entire stay plus separate 0721 and 0722 lines would be duplicative and may trigger an audit.

• Incorrect unit count. Some facilities bill hourly charges under 0720 but enter units as “1” for the entire stay. If the payer expects hourly reporting (e.g., for payment purposes), missing units can lead to underpayment or request for additional documentation.

• Exceeding the 22‑line limit. MassHealth warns that inpatient claims with more than 22 revenue code lines must be submitted electronically ^[2]. Submitting a paper claim with 23 lines may result in rejection. Bundle outpatient services to fit the limit.

• Using 0720 for birthing center services. A free‑standing birth center should use 0724 (Birthing center), not 0720. Auditors look for revenue code mismatches with place of service or provider type.

Related Codes/Fields

The table below lists sub‑codes within the 072X series and other revenue categories commonly billed alongside labor/delivery services. All codes are from the Noridian Revenue Codes list ^[1].

Revenue Code	Description
0720	Labor Room/Delivery – General
0721	Labor only (separate from delivery room)
0722	Delivery only (separate from labor room)
0723	Circumcision (performed in delivery room)
0724	Birthing center (free‑standing or hospital‑based center)
0729	Other obstetric services not covered above
0170	Nursery – General (newborn care after delivery)
0370	Anesthesia – General (often used for epidural or C‑section)
0250	Pharmacy – General (medications administered during labor)
0960	Professional fees (if billed on same form – check payer rules)

Note: MassHealth’s UB‑04 Guide does not specify which revenue codes are required or prohibited, but providers must follow general paper claim instructions, such as using the correct form and limiting lines ^[2]. Always confirm payer‑specific cross‑walks between revenue codes and HCPCS codes when billing Medicare or commercial insurers.

---

References

[1] Noridian Revenue Codes — https://med.noridianmedicare.com/web/jea/topics/claim-submission/revenue-codes

[2] MassHealth UB-04 Guide — https://www.mass.gov/doc/ub-04-billing-guide-0/download