The hospital asked Amina Martel, MD, CEP America’s Director of Hospitalist Medicine, to come up with ways to reduce this. Her solution? A medical short stay unit (MSSU), more commonly called an Observation Unit, which dropped the one day stays from 30% of admissions to 20%.
Observation Units, treatment areas that provide beds for hospital assessments without formal admissions, are currently in high demand after the implementation of the Affordable Care Act (ACA). They can now be used to avoid potential fines and create new revenue. RAC audits target admissions under 24-hours, putting payment at risk. In comparison, CMS now reimburses hospitals at a fixed price of approximately $500 per patient plus any line item that the hospital bills for an observation status that lasts from 3 to 72 hours. Observation Units may also help decrease readmission rates as visits are classified as outpatient.
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