CMS' expansion of the two-midnight rule has had a "modest benefit" to Nashville, Tenn.-based HCA Healthcare, the system's CFO Mike Marks said at the Wells Fargo Healthcare Conference.
"In the first six months, we're seeing our physician community adapt to the Medicare Advantage two-midnight rule," Mr. Marks said at the conference on Sept. 5. "They're writing more inpatient orders and fewer observation visits, particularly for accounts over $2 million, as expected."
As for how it's playing out with payers, Mr. Marks said HCA has seen a slight improvement in denial rates, "which is encouraging."
"However, there are still too many denials, and we're working with Medicare Advantage payers to fully adopt the rule," he said. "Overall, it has supported inpatient admissions, contributing about half a point of growth in the first six months. We expect further improvement as payers continue to adjust."