Compliance: Celebrate CMS' Modification of Over Two-Midnight Rule

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Note:  The following article synopsis was NOT provided by AAPC. It was created by Find-A-Code/innoviHealth.

Article Overview

This compliance article discusses CMS revisions to the Medicare two-midnight policy in the 2016 OPPS final rule, including how exception reviews are being handled and what types of documentation are relevant to inpatient status determinations. It is aimed at hospital compliance, coding, and utilization management professionals who need to understand the policy shift, the roles of CMS contractors, and the broad documentation themes involved in short-stay inpatient review.

Why This Topic Matters

The policy affects how hospitals determine inpatient versus outpatient status, how short stays are reviewed, and how documentation supports payment decisions. It is relevant to organizations monitoring Medicare compliance and medical necessity review processes.

Article Sections

  1. Score Big with the Exceptions to the Two-Midnight Rule

    This section discusses CMS’s revised approach to exceptions under the two-midnight policy and the shift in how short-stay cases are reviewed. It also notes the broader compliance implications for hospital decision-making.

  2. Ensure Medical Necessity Passes Muster

    This section focuses on documentation and medical necessity themes related to inpatient admission decisions. It emphasizes the kinds of clinical factors that are considered in the policy context.

  3. Explore the Opinions Galore: What’s Yours?

    This section summarizes differing views on the policy from professional organizations and stakeholders. It presents the broader debate around time-based admission criteria.

  4. The Rule That Has Been…

    This section provides background on the two-midnight policy and its relationship to prior admission timing guidance. It also summarizes concerns raised about the policy’s effects.

  5. Watch Out for QIO Reviews as CMS Stands Firm

    This section explains the continued CMS position and the involvement of Quality Improvement Organizations in review activity. It also discusses the short-stay review process at a high level.

  6. What CMS Says…

    This section quotes CMS’s policy language about case-by-case review and documentation support. It reinforces the general direction of the policy change.

What You Will Learn

  • How CMS revised the Medicare two-midnight policy
  • What broad types of documentation are relevant to inpatient status decisions
  • How short-stay reviews are being redirected within the Medicare review process
  • Which organizations and stakeholders are referenced in the policy discussion
  • How the article frames the compliance implications for hospitals

Who Should Read This

  • Hospital compliance staff
  • Medical coders
  • Utilization review professionals
  • Revenue cycle teams
  • Physician advisors
  • Health information management professionals

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