NurseCheck · The observation notice

Observation Status — What Has To Be Said, By When, And Who Signs

The page in this matrix about who counts as an inpatient records that the word "observation" does not appear anywhere in part 485 subpart F. The question it asks is real and the text it holds does not answer it. This page goes to where the word does appear: Sec. 489.20(y), at the end of the section that the paper-trail page opened. The paragraph requires a hospital or critical access hospital to tell an individual in observation what their status is and what it means. It is one of the few places in this part of the CFR that describes what a named person has to write on a document. It also never says what observation is, never says when the clock starts, and states no consequence for not giving the notice at all.

42 CFR 489.20(y); 42 CFR 489.20(w)(1); 42 CFR 409.30(a)(1); 42 CFR 489.53(b)(2) — Observation status — what the hospital has to tell you, when, and who signs Official text

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Answer the questions below. The result shows the rules that turn on your answers, the statutory text behind them, and the facts you still need to confirm yourself.

1. Where in the process is this?

The duties in paragraph (y) attach at different points. The 24 hours is what brings them into play and the 36 hours is what caps them. The signature requirements are a separate either/or. Every block is shown either way — this decides which comparison is drawn out at the top.

2. Who are you in this?

Paragraph (y) is addressed to the institution, with one exception. (y)(3)(ii) describes the staff member who presented the notice and what that signature has to carry. Every block is shown either way — this decides which way the note under the signature block is written.

What turns on your answers

What to document

A record-keeping aid built from what the law makes relevant.

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The text, verbatim

Everything above is derived from the text reproduced here. Read it before relying on any summary.

§ 489.20(y) Who gets the notice, and the two clocks

(y) In the case of a hospital or critical access hospital, to provide notice, as specified in paragraphs (y)(1) and (2) of this section, to each individual entitled to Medicare benefits under Title XVIII of the Act when such individual receives observation services as an outpatient for more than 24 hours. Notice must be provided to the individual not later than 36 hours after observation services are initiated or sooner if the individual is transferred, discharged, or admitted. Notice may be provided before such individual receives 24 hours of observation services as an outpatient.

Official text The source note printed for Sec. 489.20 as a whole is 45 FR 22937, Apr. 4, 1980, unless otherwise noted. Paragraph (y) was added after that date and the amending citation is not printed on this eCFR page. This page asserts no effective date for it. The paragraph is addressed to the hospital and to a critical access hospital. Its beneficiary is 'each individual entitled to Medicare benefits under Title XVIII of the Act'. The 24 hours is the trigger and the 36 hours is the deadline; they are measured from different things and neither says when observation services are initiated.

§ 489.20(y)(1) A standardised form, specified by the Secretary

(1) Written notice. Hospitals and critical access hospitals must use a standardized written notice, as specified by the Secretary, which includes the following information:

Official text The source note printed for Sec. 489.20 as a whole is 45 FR 22937, Apr. 4, 1980, unless otherwise noted. Paragraph (y) was added after that date and the amending citation is not printed on this eCFR page. This page asserts no effective date for it. The paragraph fixes the form ('standardized', 'as specified by the Secretary') and the subject matter, and leaves the wording to the Secretary. The form itself is not in the CFR text reproduced here and this page does not reproduce one.

§ 489.20(y)(1)(i) What has to be explained first: the status, and the reason for it

(i) An explanation of the status of the individual as an outpatient receiving observation services and not as an inpatient of the hospital or critical access hospital and the reason for status as an outpatient receiving observation services; and

Official text The source note printed for Sec. 489.20 as a whole is 45 FR 22937, Apr. 4, 1980, unless otherwise noted. Paragraph (y) was added after that date and the amending citation is not printed on this eCFR page. This page asserts no effective date for it. Two things are required: the status, and the reason for the status. The paragraph requires that a reason be given. It gives no test for whether a given reason is adequate and it does not say who decides.

§ 489.20(y)(1)(ii) What has to be explained second: the implications

(ii) An explanation of the implications of such status as an outpatient on services furnished by the hospital or critical access hospital (including services furnished on an inpatient basis), such as Medicare cost-sharing requirements, and subsequent eligibility for Medicare coverage for skilled nursing facility services.

Official text The source note printed for Sec. 489.20 as a whole is 45 FR 22937, Apr. 4, 1980, unless otherwise noted. Paragraph (y) was added after that date and the amending citation is not printed on this eCFR page. This page asserts no effective date for it. The paragraph names two implications by way of example ('such as'): cost-sharing, and later eligibility for SNF coverage. It states no dollar amount and no qualifying period. The qualifying period lives in Sec. 409.30(a)(1), reproduced below.

§ 489.20(y)(2) The oral explanation — no person and no time named

(2) Oral notice. The hospital must give an oral explanation of the written notification described in paragraph (y)(1) of this section.

Official text The source note printed for Sec. 489.20 as a whole is 45 FR 22937, Apr. 4, 1980, unless otherwise noted. Paragraph (y) was added after that date and the amending citation is not printed on this eCFR page. This page asserts no effective date for it. The subject of this paragraph is 'The hospital'. Paragraphs (y)(1) and (y)(3)(ii) both say 'hospital or critical access hospital' or 'hospitals and critical access hospitals'; this one does not. The paragraph names no person to give the explanation and no time by which it has to be given, and it does not require that it be given before the written notice or at the same time.

§ 489.20(y)(3) Two signature paths, not one

(3) Signature requirements. The written notice specified in paragraph (y)(1) of this section must either—

Official text The source note printed for Sec. 489.20 as a whole is 45 FR 22937, Apr. 4, 1980, unless otherwise noted. Paragraph (y) was added after that date and the amending citation is not printed on this eCFR page. This page asserts no effective date for it. The paragraph is written as an either/or. It is the only place in Sec. 489.20 reproduced on this page that describes what a named natural person has to write on a document.

§ 489.20(y)(3)(i) Path one: the individual, or someone acting on their behalf

(i) Be signed by the individual who receives observation services as an outpatient or a person acting on the individual's behalf to acknowledge receipt of such notification; or

Official text The source note printed for Sec. 489.20 as a whole is 45 FR 22937, Apr. 4, 1980, unless otherwise noted. Paragraph (y) was added after that date and the amending citation is not printed on this eCFR page. This page asserts no effective date for it. The signature acknowledges receipt. It does not acknowledge understanding, and the paragraph does not require that the individual agree with the status described in the notice.

§ 489.20(y)(3)(ii) Path two: refusal — and what the staff member has to write

(ii) If the individual who receives observation services as an outpatient or the person acting on behalf of the individual refuses to provide the signature described in paragraph (y)(1) of this section, is signed by the staff member of the hospital or critical access hospital who presented the written notification and includes the name and title of the staff member, a certification that the notification was presented, and the date and time the notification was presented.

Official text The source note printed for Sec. 489.20 as a whole is 45 FR 22937, Apr. 4, 1980, unless otherwise noted. Paragraph (y) was added after that date and the amending citation is not printed on this eCFR page. This page asserts no effective date for it. Reproduced exactly as printed. The refusal is described as a refusal to provide 'the signature described in paragraph (y)(1)', but paragraph (y)(1) describes no signature — the signature is described in (y)(3)(i). This page does not correct the cross-reference and does not read it as meaning something other than what it says. What the staff member's signature has to carry is listed in the paragraph: name, title, a certification that the notification was presented, and the date and time it was presented.

§ 489.20(w)(1) The same section puts the two statuses against each other

(1) In the case of a hospital as defined in § 489.24(b), to furnish written notice to all patients at the beginning of their planned or unplanned inpatient hospital stay or at the beginning of any planned or unplanned outpatient visit for observation, surgery or any other procedure requiring anesthesia, if a doctor of medicine or a doctor of osteopathy is not present in the hospital 24 hours per day, 7 days per week, in order to assist the patients in making informed decisions regarding their care, in accordance with § 482.13(b)(2) of this subchapter

Official text Reproduced for one sentence only: this paragraph, in the same section, treats an inpatient hospital stay and an outpatient visit for observation as two different things. It is a separate duty about notice when no physician is present, and it is not the observation notice. It is printed here because the sentence is the closest thing in Sec. 489.20 to a statement that observation is not inpatient care.

§ 409.30(a)(1) The qualifying period the notice has to explain is in another part

Effective 1983-03-25
(1) Have been hospitalized in a participating or qualified hospital or participating CAH, for medically necessary inpatient hospital or inpatient CAH care, for at least 3 consecutive calendar days, not counting the date of discharge; and

Official text Source note for Sec. 409.30 is 48 FR 12541, Mar. 25, 1983, unless otherwise noted. This is the requirement that Sec. 489.20(y)(1)(ii) asks the hospital to explain the implications of without naming it. The days have to be days of inpatient care. Paragraph (y)(1)(i) tells the individual that observation services are not inpatient care. This page states the two requirements side by side and does not compute whether any individual meets them.

§ 489.53(b)(2) What a hospital may lose its agreement over — (y) is not in the list

(2) The hospital fails to comply with § 489.20(m), (q), and (r), which require the hospital to report suspected violations of § 489.24(e), to post conspicuously in emergency departments or in a place or places likely to be noticed by all individuals entering the emergency departments, as well as those individuals waiting for examination and treatment in areas other than traditional emergency departments, (that is, entrance, admitting area, waiting room, treatment area), signs specifying rights of individuals under this subpart, to post conspicuously information indicating whether or not the hospital participates in the Medicaid program, and to maintain medical and other records related to transferred individuals for a period of 5 years, a list of on-call physicians for individuals with emergency medical conditions, and a central log on each individual who comes to the emergency department seeking assistance.

Official text Reproduced in full so the list can be read. It names Sec. 489.20(m), (q) and (r). It does not name (y). A full-text search of Sec. 489.53 as captured returns zero occurrences of 'observation' and zero of '(y)'. This page does not infer from that either that there is no consequence for not giving the notice or that there is one; it states what the text says and what it does not say.

§ 489.20-source-note How current this text is, and what the page does not give

Authority: 42 U.S.C. 1302, 1395i-3, 1395x, 1395aa(m), 1395cc, 1395ff, and 1395hh. Source: 45 FR 22937, Apr. 4, 1980, unless otherwise noted.

Official text The authority and source lines as printed by eCFR for Sec. 489.20. 'Unless otherwise noted' is the whole of what the page gives about later amendments, and it does not print a citation for paragraph (y). This page names no effective date for (y) rather than borrow the 1980 date from the section.

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