The number of short, expensive inpatient hospital stays would be significantly reduced under policies in the Centers for Medicare & Medicaid Services' proposed hospital inpatient prospective payment system (IPPS) rule, a July 30 report by the Department of Health and Human Services Office of Inspector General found. According to the report, Hospitals' Use of Observation Stays and Short Inpatient Stays for Medicare Beneficiaries (OEI-02-12-00040), short inpatient stays on average cost Medicare and beneficiaries more than observation stays. The report made no recommendations and was issued in its final form.
