CMS Drops Two-Midnight Rule

CMS has released its fiscal year 2017 Medicare Inpatient Prospective Payment System proposed rule, which does away with the two-midnight rule’s inpatient pay cuts.(Becker’s Hospital CFO)

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.(Healthcare Dive)

Under the new rule released Monday, hospitals will get a one-time 0.6 percent payment in 2017 to make up for the 0.2 percent reduction that has been imposed over the last three years.(Healthcare Finance)

What is the Two-Midnight Rule?