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CMS holds firm on disputed two-midnight pay cut to hospitals
Modern Healthcare

The CMS is standing behind the inpatient payment cut to hospitals imposed under the two-midnight rule despite ongoing battles with hospitals over the reduction. It’s a stance that doesn’t bode well for hospitals’ efforts to persuade courts to reverse the reduction, legal experts say. The CMS made its position clear in a notice and request for comment published Tuesday in the Federal Register in response to a federal judge’s September ruling. In that ruling, in Shands Jacksonville Medical Center v. Burwell, the judge partially sided with the American Hospital Association and scores of other hospitals around the country, ordering HHS to better justify the cut and re-open the policy to comments.