How the two-midnight rule may affect Medicare Advantage finances

From Modern Healthcare:

Medicare Advantage companies and healthcare providers are reckoning with the effects of an updated federal policy that governs how to pay for patients’ hospital stays.

The "two-midnight rule," newly applied to Medicare Advantage this year, lets hospitals categorize more patient visits as higher-cost, inpatient stays. In addition to threatening to disrupt carriers' already shaky finances, it could invite more scrutiny of Medicare Advantage companies' coverage policies and decision-making tools.