The diagram, which first appeared at Appeal Academcy, shows a step-by-step analysis of how hospitals can treat the two-midnight rule, which says hospitals will be reimbursed for full Part A services as long as the patient stays longer than two midnights.
The rule is designed to reduce long stays in outpatient and observation status.
The diagram notes a huge “gray area” for hospitals is when officials are uncertain if the inpatient is expected to be discharged within 24 hours.
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