Medicare Claims Processing Manual (Pub. 100-04), Ch. 6 § 40.3.4
Situations that Require a Discharge or Leave of Absence
40.3.4 - Situations that Require a Discharge or Leave of Absence
(Rev. 4001, Issued: 03-16-18, Effective: 06-19-18, Implementation: 06-19-18)
Medicare systems are set up so that the SNF need not submit a discharge bill when the
situation is that the beneficiary (who leaves the SNF and then returns before the
following midnight) receives outpatient services from a Medicare participating hospital,
CAH, or other appropriate provider during his/her absence. Edits allow hospitals and
CAHs to bill for these services for a beneficiary in a Part A PPS stay. Receipt of
outpatient services from another provider does not normally result in a SNF discharge.
Two situations force a discharge from a SNF: 1) the beneficiary’s admission as an
inpatient to a Medicare participating hospital or CAH, or 2) the beneficiary’s transfer to
another SNF for inpatient services. A beneficiary cannot be an inpatient in more than one
facility at a time. Consequently, the SNF must submit a discharge bill if either of these
events occur.
If the patient is readmitted to the SNF, the SNF should submit a new bill (TOB 211 or
212) with a new admission date. See §40.3.2, Patient Readmitted Within 30 days After
Discharge, for further instructions.
Bills for excluded services (identified in §20 of this chapter) rendered by participating
hospitals, CAHs, or other appropriate providers may be paid to the rendering provider in
addition to the Part A PPS payment made to the SNF. Other outpatient services furnished
to a resident in a Part A PPS stay by another provider/supplier must be billed by the SNF.
Home health or outpatient services provided during a leave of absence do not affect the
leave and no discharge bill is required.
Home health services are not payable unless the patient is confined to his home, and
under Medicare regulations, a SNF cannot qualify as a home. Where the beneficiary
receives services from a home health agency, the home health agency is responsible for
billing.
If the beneficiary is formally discharged or otherwise departs for reasons other than
described above but then, is readmitted or returns before the following midnight, he is not
considered discharged. The SNF is responsible for billing for services during the period
of absence, unless such services are otherwise excluded from Part A PPS payment or are
excluded from Medicare coverage (see §10.1).
NOTE: This instruction only applies to Medicare fee-for-service beneficiaries in a
participating SNF.