According to a July 31, 2016, article from Emily Mongan of McKnight’s Long Term Care News, “More than 200 hospitals have filed new lawsuits in the ongoing battle between providers and the Department of Health and Human Services over its controversial ‘two-midnight’ rule. The new suits, filed on Thursday, are the latest in a series of challenges from hospitals who oppose the rule's 0.2% reduction of inpatient compensation. The earlier legal challenges led to HHS killing the payment cut in April for fiscal year 2017, and temporarily increasing payment rates. Both lawsuits, filed by a total of 211 hospitals, allege the agency violated federal regulations when it implemented the pay cuts and did not take hospital's concerns into accounts.”
The article goes on to include that, the two-midnight rule requires a “two midnight” stay in the hospital before a Medicare beneficiary’s stay is considered an inpatient admission. “The rule and its inpatient cuts were estimated to cut hospital payments by $220 million each year.”
You can read the full article here.