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What is the 72hr rule?

Published in Medicare Billing Rule 2 mins read

The 72-hour rule, also known as the Medicare 72-hour inpatient hospital rule, is a billing regulation primarily enforced by the Centers for Medicare & Medicaid Services (CMS). Its core purpose is to streamline billing processes and ensure the Medicare program operates smoothly.

Understanding the 72-Hour Rule

This rule mandates that any outpatient diagnostic tests or services provided to a patient within 72 hours (or three days) leading up to their inpatient hospital admission must be included as part of the inpatient hospital stay bill. These services cannot be billed separately from the inpatient stay.

The intent behind this rule is to prevent the unbundling of services that are typically considered integral to an inpatient admission. By consolidating these charges, it helps to simplify the billing process and provides a clearer financial picture for the hospital and the patient.

Key Aspects of the Rule

The 72-hour rule applies specifically when:

  • Timeframe: Outpatient services are rendered 72 hours or less before a patient is formally admitted as an inpatient.
  • Service Type: The services are outpatient diagnostics or other services directly related to the condition necessitating the inpatient admission.
  • Billing Impact: Charges for these specific outpatient services must be incorporated into the overall inpatient bill. They are not allowed to be billed as distinct outpatient services.

Why the 72-Hour Rule Matters

This regulation has significant implications for how hospitals bill for care and how Medicare reimburses them. It ensures that medical facilities are bundling related services appropriately, which contributes to more accurate claim submissions and helps control costs within the Medicare system. For beneficiaries, it means that services closely preceding an inpatient stay are covered under the inpatient benefit, simplifying their understanding of charges related to a single episode of care.

Who it Applies To

This rule is a fundamental part of Medicare's billing guidelines, primarily impacting hospitals and other healthcare providers who serve Medicare beneficiaries. It helps maintain consistency in billing practices across the healthcare system for those covered by Medicare.

For more information on hospital billing and Medicare regulations, you can refer to official resources provided by Medicare.