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Federal Appeals Court Mulls Observation Status
HealthLeaders Media

One of the highest courts in the land is focusing on one of the hottest issues in healthcare.

Attorneys from the Center for Medicare Advocacy and the federal government recently sparred in the US Court of Appeals for the Second Circuit over a lawsuit linked to the distinction between inpatient and observation status at hospitals.

The stakes are high for Medicare beneficiaries, who face paying the whole bill at skilled nursing facilities if they are transferred from the hospital without spending at least three days designated as inpatient status.