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Observation vs. Inpatient Status Review

Incorrect level-of-care assignment is one of the most financially damaging errors in hospital revenue cycle management. bServed corrects it at the point of entry, before it becomes a claim.

Incorrect level-of-care assignment is one of the most financially damaging errors in hospital revenue cycle management. An inpatient case incorrectly placed as observation can mean tens of thousands of dollars in lost reimbursement, per case. bServed corrects level-of-care decisions at the point of entry, before they become claims.

What's Included

  • Real-time LOC review beginning in the Emergency Department
  • Continuous reassessment as patient condition evolves during the stay
  • Physician advisor involvement for all borderline or disputed cases
  • Payor-specific criteria application to support every level-of-care decision
  • Documentation structured to withstand payor scrutiny at every level

Level of Care Optimization

Status review isn't a one-time decision at admission. bServed reassesses level of care continuously as the patient's condition evolves, with physician advisors involved whenever a case is borderline or disputed.

How the Two-Midnight Rule Fits

The two-midnight rule is one of the main tests for inpatient status. Observation vs. Inpatient Status, Explained covers how it works and why the distinction is expensive to get wrong.

Results

At Hospital 4, the observation rate dropped to 30% from 70% and $2M+ was recovered in three months. At Hospital 5, corrected level-of-care decisions helped drive a 40% drop in payor denials.

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