The president of the Pennsylvania Medical Society (PMS) blamed Medicare’s recovery auditor (RAC) program and government mandates for Medicare coverage for hospitals’ growing reliance on holding patients for observation, sometimes for several days, rather than admitting them.
PMS President Richard Schott, M.D., told the York (Pa.) Daily Record hospitals are fearful of audits and potential penalties for admitting patients Medicare determines should have been treated as outpatients. The audits can come years after the patient’s admittance to the hospital, Schott said.
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