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Market-Based Solutions to Vital Economic Issues
Research
Jun 2, 2020

The Continued Conundrum of Discharge to a Skilled Nursing Facility After a Medicare Observation Stay

Medicare observation status has remained controversial since its introduction as an administrative payment category dating back to at least 1983. Much of the debate revolves around beneficiary billing and the 3-day rule, which requires that beneficiaries spend 3 consecutive days as an inpatient in order to receive coverage for postacute skilled nursing facility (SNF) care.

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