The American Hospital Association and several delivery systems have filed two federal lawsuits challenging the “two-midnight rule” for hospitals, as well as a 0.2 percent payment cut in Medicare to offset alleged higher costs because of the rule.

Under the two-midnight rule, Medicare will not reimburse hospitals under Part A for inpatient-level services provided to Medicare beneficiaries for treatment that does not span two midnights. The Centers for Medicare and Medicaid Services considers such treatment to be outpatient and payable under Part B.

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