The "two-midnight" rule will limit hospital payments for many patients who spend fewer than two nights in the facility to Medicare Part B rates for observation services, however the rule is controversial and it is likely to be modified before it goes into effect in October, according to an Anesthesia Business Consultants blog post.
The rule could decrease revenues for hospitals by $3,000 to $4,000 per case as more stays are classified as outpatient. The American Hospital Association and several health systems have sued CMS arguing that the rule is 'arbitrary' and 'capricious,' according to the blog post.
In May, CMS asked for public comment on how to improve payments for short stays and create a less rigid structure. While it is unlikely that the rule will be scrapped, it may be modified to include more flexibility.
Since anesthesiologists are not the admitting physicians, they do not need to determine if a patient requires at least two nights in the hospital. However, it will be important for them to continue to manage patient's pain to ensure a timely discharge for the patient, according to the blog post.
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The rule could decrease revenues for hospitals by $3,000 to $4,000 per case as more stays are classified as outpatient. The American Hospital Association and several health systems have sued CMS arguing that the rule is 'arbitrary' and 'capricious,' according to the blog post.
In May, CMS asked for public comment on how to improve payments for short stays and create a less rigid structure. While it is unlikely that the rule will be scrapped, it may be modified to include more flexibility.
Since anesthesiologists are not the admitting physicians, they do not need to determine if a patient requires at least two nights in the hospital. However, it will be important for them to continue to manage patient's pain to ensure a timely discharge for the patient, according to the blog post.
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