On Oct. 1, 2014, the controversial two-midnight rule went into effect. It gives hospitals a small reprieve in the auditing of observation patients that convert to inpatient status. Termed “medically unnecessary short stays” by the RACs, these cases are the number one reason for complex denials[i]. They represent thousands of RAC medical record requests every quarter.
CMS’ suspension in auditing them until January 1, 2014 provides a slight reduction in administrative burden for both HIM and audit management departments. Or does it?
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