Inpatient Rollover Documentation

If the patient starts off as observation status and rolls over to inpatient status day 3 of hospitalization, I have been told day 3 can be billed as inpatient INITIAL (versus subsequent) [Coding for Inpatient-Provided Services, AAP, 02/2015]

HOWEVER, should the medical note document the roll over status? Would the physician need to dictate a new H&P on the date of roll over? What are the rules/guidelines for notes on an inpatient roll over?

I hope the question was worded clearly.

Thank you!

Inpatient Rollover Documentation