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POLICY

CMS finalizes rule narrowing observation status

After three years of advocacy by nursing groups, CMS will require hospitals to admit certain Medicare patients within 24 hours.


The Centers for Medicare & Medicaid Services on Wednesday finalized a long-debated rule narrowing the use of “observation status” for older patients, a practice that has left thousands of Medicare beneficiaries with bills they did not expect.

Under the new rule, hospitals will be required to convert most observation stays to inpatient admissions within 24 hours, restoring eligibility for skilled nursing facility coverage.


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