Performing Medical Billing for a Deceased Patient Medical billing reimbursement in is allowed for deceased patients before occupying a hospital room. The Centers for Medicare and Medicaid services altered and updated their policy on July 03, 2005. Medical billing coding not only affects your bottom line, but also weight calculations for the DRG. Since the Centers for Medicare and Medicaid services changed their policy, the American Hospital Association (AHA) has asked the agency for further explaination and clarification of the policy. Medicare says that they consider a patient inpatient as soon as the doctor’s written order requests it. No matter if the patient dies before being assigned or not, room …