Draft Medicare Outpatient Observation Notice

The Centers for Medicare & Medicaid Services (CMS) released this draft notice on August 1, 2016. It has been submitted for approval to the Office of Management and Budget (OMB). After the notice wording is approved, hospitals will be required to use the notice to inform any Medicare beneficiary receiving outpatient observation services for 24 or more hours that Medicare will not cover subsequent skilled nursing facility (SNF) services. An inpatient hospital stay of three or more days is a prerequisite for covered SNF services.

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