What is "Outpatient" observation status? A hospital billing classification that can make Medicare patients pay for the cost of their: Hospital stay, hospital prescriptions, nursing home care (patients must be classified as inpatients for 3 days in the hospital in order for Medicare to pay for subsequent nursing home care."

Medicare Hospital Outpatient & Observation Status Toolkit

Patients may find themselves in the hospital, receiving medical services, tests, and treatment, sometimes for many days, but learn they are considered outpatients, in Observation Status, not admitted inpatients. This is understandably confusing for patients and families – and difficult for hospital physicians and personnel. This information is provided to help you understand and respond to an “outpatient” Observation Status designation.

Click here to explore the Toolkit contents online, or Print a full .pdf of the Toolkit