New NYS Regulations on Hospital Observation Stays

Changes to the Public Health Law (PHL) with regard to observation status, became law on Oct. 21, 2013 and became effective Jan. 19, 2014. The new PHL Section 2805-w requires hospitals to inform patients who are assigned to observation status that they are not admitted to the hospital, but are under observation status. Oral and written notice is required within 24 hours of assignment to observation status. The written notice must be signed by the patient or the patient’s legal representative to acknowledge receipt. If the patient refuses to sign the notice, documentation of the attempt to provide it and of the refusal must be recorded in the patient’s medical record. At a minimum, the written notice must include that observation status may affect the patient’s Medicare, Medicaid and/or private insurance coverage for the current hospital stay, including medications and other pharmaceutical supplies, as well as, coverage for any subsequent discharge to a skilled nursing facility, home, or community-based care. It must encourage the patient to contact his or her insurance plan for more specific information on coverage.

Contact: Elliott Frost, efrost@leadingageny.org, 518-867-8832