Skilled Nursing Providers Question CMS Coverage Rule

In a recent conference call of the Skilled Nursing Facility Forum of the Centers for Medicare and Medicaid (CMS), providers asked about the CMS policy that makes a distinction between in-patient hospitalization and hospital-observation stays when determining whether a patient qualifies for Medicare nursing home benefits upon discharge. Ordinarily, a three-day hospitalization triggers the coverage, but MCS officials clarified that observation days do not count toward the requirement. They noted that the September-October 2009 Ask Medicare newsletter discusses why a skilled nursing facility stay may not be covered. The Medicare Manual also addresses the issue.