CMS clarifies two-midnight rule, but hospitals still upset

CMS released a guidance letter last week on its rule about how Medicare classifies and pays for short hospital stays. The February 24 letter says Medicare Administrative Contractors should “re-review” all claim denials under the two midnight rule’s probe and educate process before January 30.

 

It was the second clarification in less than a month, but an American Hospital Association official told HealthLeaders Media that the two-midnight rule is arbitrary and penalizes hospitals for being efficient. Priya Bathija, the AHA’s senior associate director of policy, said the AHA is calling on CMS to develop a better payment methodology or replace the rule with a better short-term stay payment method.

 

Read more about the clarification here.