The U.S. District Court for the District of Connecticut must review whether Medicare beneficiaries challenging the Centers for Medicare & Medicaid Services’ use of observation status have a property interest under the federal Due Process Clause in being admitted to their hospitals as inpatients, the U.S. Court of Appeals for the 2nd Circuit ruled yesterday. “The District Court erred in concluding that plaintiffs lacked a property interest in being treated as ‘inpatients,’ because, in so concluding, the District Court accepted as true the Secretary’s assertion that a hospital’s decision to formally admit a patient is ‘a complex medical judgment’ left to the doctor’s discretion,” the ruling states. “That conclusion, however, constituted an impermissible finding of fact, which in any event is inconsistent with the complaint’s allegations that the decision to admit is, in practice, guided by fixed and objective criteria set forth in ‘commercial screening guides’ issued by the Centers for Medicare & Medicaid Services.” In a friend-of-the-court brief filed last February, AHA shared its perspective on why CMS’s ambiguous policy regarding “observation” stays is a difficult issue for hospitals and hence beneficiaries.

Related News Articles

Headline
The 43-day government shutdown ended last night when President Trump signed a funding bill into law, hours after the House passed the measure by a 222-209 vote…
Headline
Medicaid enrollment decreased 7.6% in fiscal year 2025 and is expected to be mostly flat in FY 2026, according to KFF’s annual Medicaid Budget Survey released…
Headline
ByHeart has expanded its voluntary recall to include all Whole Nutrition Infant Formula cans and Anywhere Pack products amid an investigation by the Food and…
Blog
Across the country, hospitals and health systems are working to meet the increasing demand for behavioral health care. As health needs evolve, many times the…
Headline
The House is expected to begin a final vote Nov. 12 on the Senate-backed funding package, bringing a potential end to the government shutdown one step closer.…
Headline
A blog by Ariel Levin, AHA director of coverage policy and state issues, highlights considerations for hospital finance and revenue cycle leaders in the face…