Is it possible to for SQL Output clause to return a column not being inserted?

You can do this by using MERGE instead of insert:

so replace this

INSERT INTO ReportOption (field1, field2...)
OUTPUT @ReportOption.PracticeId, --> this is the field I don't know how to get
       inserted.ReportOptionId
  INTO @PracticeReportOption (PracticeId, ReportOptionId)
SELECT field1, field2
  FROM @ReportOption

with

MERGE INTO ReportOption USING @ReportOption AS temp ON 1 = 0
WHEN NOT MATCHED THEN
    INSERT (field1, field2)
    VALUES (temp.Field1, temp.Field2)
    OUTPUT temp.PracticeId, inserted.ReportOptionId, inserted.Field1, inserted.Field2
    INTO @PracticeReportOption (PracticeId, ReportOptionId, Field1, Field2);

The key is to use a statement that will never be true (1 = 0) in the merge statement, so you will always perform the insert, but have access to fields in both the source and destination tables.

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Here is the entire code I used to test it:

CREATE TABLE ReportOption (ReportOptionID INT IDENTITY(1, 1), Field1 INT, Field2 INT)
CREATE TABLE Practice (PracticeID INT IDENTITY(1, 1), Field1 INT, Field2 INT)
CREATE TABLE PracticeReportOption (PracticeReportOptionID INT IDENTITY(1, 1), PracticeID INT, ReportOptionID INT, Field1 INT, Field2 INT)

INSERT INTO Practice VALUES (1, 1), (2, 2), (3, 3), (4, 4)


MERGE INTO ReportOption r USING Practice p ON 1 = 0
WHEN NOT MATCHED THEN
    INSERT (field1, field2)
    VALUES (p.Field1, p.Field2)
    OUTPUT p.PracticeId, inserted.ReportOptionId, inserted.Field1, inserted.Field2
    INTO PracticeReportOption (PracticeId, ReportOptionId, Field1, Field2);

SELECT  *
FROM    PracticeReportOption

DROP TABLE ReportOption
DROP TABLE Practice
DROP TABLE PracticeReportOption 

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More reading, and the source of all that I know on the subject is Here

Ref : http://stackoverflow.com/questions/10949730/is-it-possible-to-for-sql-output-clause-to-return-a-column-not-being-inserted