E&M Codes for Labor and Delivery

We have many options for Labor and Delivery E&M levels (all 1 through 5) on our CDM but the facility is NOT licensed as an OB ED. We have instructed the department they can bill E&M Level 1 (99211) only when patients are being assessed and sent home after false labor determination. Scheduled NSTs and admission to IP do not qualify for E&M codes. The department is pushing back saying they are designated as an OB Triage and therefore allowed to bill all E&M Levels, even on Inpatient accounts. Has anyone ever heard of this? 
My understanding is that you are either an OB ED or not. And if not, E&M Levels are only appropriate on false labor visits. 
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