Medicare Program Integrity Manual (Pub. 100-08), Ch. 6 § 6.5.6
Length-of-Stay Review
6.5.6 - Length-of-Stay Review
(Rev. 10365; Issued: 10-02-20; Effective: 08-27-20; Implementation: 08-27-20)
The contractor shall determine whether the length-of-stay for PPS cost outlier claims and
specialty hospital/unit claims, when selected for medical review, is appropriate and
medically necessary. Identify cases of potential delayed discharge. For example, the
beneficiary was medically stable, and continued hospitalization was unnecessary, or
nursing home placement or discharge to home with home care would have been
appropriate in providing needed care without posing a threat to the safety or health of the
beneficiary (see §4110).
If Medicare payment is applicable to only part of the stay, review the covered portion of
the stay and enough of the rest of the medical record (if necessary) to answer any specific
questions that may arise from review of the covered part of the stay. If a beneficiary
became Medicare eligible during a hospital stay, review enough of the medical record
prior to the initiation of Medicare benefits to acquire sufficient information to make a
determination. Do not perform lengthy reviews of non-covered care. In PPS
waived/excluded areas, length-of-stay review is performed for all inpatient admissions
that are selected for medical review.
The contractor shall determine whether the length of stay was appropriate for claims
selected for medical review that represent PPS cost outliers. However, the contractor
shall not include days on which care is determined not to have been medically necessary
in the calculation of outlier payments. Where it is determined that a beneficiary’s stay
was unnecessarily long, and potentially represents fraud or abuse, the contractor shall
make a referral to the UPIC.