The Medicare Appeal process.

This determination of “outpatient status” has greater implications for those insured by Medicare, especially if you should need subacute rehabilitation after your hospital stay. Medicare requires a 3 day INpatient hospital stay before they will cover a stay in a sub acute rehabilitation facility.

Medicare: Inpatient or Outpatient?

Some Medicare beneficiaries who visit the hospital are getting surprised by big bills because their stays weren't considered inpatient services.The issue arises when a Medicare beneficiary who comes to a hospital is placed in a status called "observation care.