Medicare Claims Processing Manual (Pub. 100-04), Ch. 3 § 40.2.5
Repeat Admissions
40.2.5 - Repeat Admissions
(Rev. 2627, Issued 01-04-13, Effective 10-01-12, Implementation 10-01-12)
A patient who requires follow-up care or elective surgery may be discharged and readmitted
or may be placed on a leave of absence.
Hospitals may place a patient on a leave of absence when readmission is expected and the
patient does not require a hospital level of care during the interim period. Examples could
include, but are not limited to, situations where surgery could not be scheduled immediately,
a specific surgical team was not available, bilateral surgery was planned, or when further
treatment is indicated following diagnostic tests but cannot begin immediately. Institutional
providers must not use the leave of absence billing procedure when the second admission is
unexpected.
The A/B MACs (A) may choose to review claims if data analysis deems it a priority.
AB/MACs (A) will review the claim selected, based on the medical record associated with
that claim and make a payment determination on that claim. They will then refer the claim
to the QIO, in accordance with IOM 100-08, chapter 6, §6.5.7.
The QIOs may review acute care hospital admissions occurring within 30 days of discharge
from an acute care hospital if both hospitals are in the QIO’s jurisdiction and if it appears
that the two confinements could be related. Two separate payments would be made for these
cases unless the readmission or preceding admission is denied.
NOTE: The QIO’s authority to review and to deny readmissions when appropriate is not
limited to readmissions within 30 days. The QIO has the authority to deny the second
admission to the same or another acute PPS hospital, no matter how many days elapsed since
the patient's discharge.
Placing a patient on a leave of absence will not generate two payments. Only one bill and
one DRG payment is made. The A/B MACs (A) do not consider leave of absence bills as
two admissions. It may select such bills for review for other reasons.
When a patient is discharged/transferred from an acute care Prospective Payment System
(PPS) hospital, and is readmitted to the same acute care PPS hospital on the same day for
symptoms related to, or for evaluation and management of, the prior stay’s medical
condition, hospitals shall adjust the original claim generated by the original stay by
combining the original and subsequent stay onto a single claim.
Services rendered by other entities during a combined stay must be paid by the acute care
PPS hospital. The acute care PPS hospital is responsible for the other entity’s services per
common Medicare practice.
NOTE: Medicare does not reimburse other entities for services performed during two
inpatient acute care PPS stays that are combined onto a single claim. However, the other
entity’s services may be considered and billed as covered services, when appropriate, by the
acute care PPS hospital.
When a patient is discharged/transferred from an acute care PPS hospital and is readmitted to
the same acute care PPS hospital on the same day for symptoms unrelated to, and/or not for
evaluation and management of, the prior stay’s medical condition, hospitals shall place
condition code (CC) B4 on the claim that contains an admission date equal to the prior
admissions discharge date.
Upon the request of A/B MACs (A), hospitals must submit medical records pertaining to the
readmission.
For Non-PPS acute care hospitals, such as Maryland waiver hospitals, the readmission bill (if
related to original admission) does not have to be combined with the original bill if the stay
spans a month. However, the original bill would have to be adjusted to change the patient
status code to a 30 (still a patient). Subsequent monthly bills for this admission would be
billed as interim bills, 112, 113 or 114.