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California Hospitals Must Follow Two Laws for Observation Status

By Doug Desjardins  
   March 27, 2017

"So there are complexities involved with both policies and they require a higher level of planning for hospitals to make sure they cover all the bases," said Rogers.

CMS has been struggling for years to work out a solution to address patient complaints about observation status.

In 2013, the agency issued the two-midnight rule that required doctors to admit patients to the hospital if they expected patients to remain in the hospital for more than two days (two midnights).

But a study of the program released in December 2016 by the U.S. Health & Human Services Department Office of Inspector General determined that the policy did not reduce the incidence of observation visits.

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