CMS final rule ‘permanently’ removes controversial two-midnight payment cut

From Healthcare Dive:

  • CMS on Tuesday finalized the 2017 Medicare payment rates under the Inpatient Prospective Payment System (IPPS) and the Long-Term Care Hospital (LTCH) Prospective Payment System.
  • The agency, under the final legislation for 2017, is “permanently removing” the -0.2% adjustment of compensation for inpatient services related to the “two-midnight rule.” This will increase FY 2017 payments by approximately 0.8%, the agency mentioned in a fact sheet.
  • Under the two-midnight rule, hospital stays spanning less than two evenings are considered outpatient visits and paid accordingly. Those lasting two nights or longer are compensated as inpatient care.

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