The independent agency that advises Congress on Medicare payment issues has recommended that Congress call on Medicare to revise its policies governing short hospital stays for Medicare patients.

At its March 5 meeting in Washington, D.C., staff of the Medicare Payment Advisory Commission (MedPAC) made a presentation on Medicare hospital short stay policy to MedPAC commissioners.

Based on the presentation and member deliberations, MedPAC is recommending to Congress that Medicare include observation status when determining whether newly discharged patients are eligible for skilled nursing care; that hospitals be required to notify hospitalized patients if they are under observation only and also inform them of the cost-sharing responsibilities of that status; and that Medicare pay hospitals for self-administered drugs for patients in observation status through Medicare’s outpatient payment system.

MedPAC also offered recommendations on changes Medicare’s Recovery Audit Contractors program (RAC audits).

See the MedPAC presentation on short stay policy here and learn more about MedPAC’s recommendations in this MedPageToday article.