Back to Page


Revenue Cycle

Observation Status Notification Requirements: A Summary of the NOTICE Act

Signed into law on August 6th, 2015, The Notice of Observation Treatment and Implication for Care Eligibility Act—or the NOTICE Act—requires healthcare organizations to provide written and oral notification to patients when they are placed in observation status, and explain the implications of this status. The legislation is intended to help address a lack of understanding among many Medicare beneficiaries as to the differences between inpatient status and observation status, and inform them of the financial implications of the different statuses. In order to help providers comply with this new requirement—which will take effect 12 months from the time it was signed into law—The Academy has summarized below the key requisites of the act that healthcare organizations will need to follow in order to maintain compliance.

Written Notification
All Medicare beneficiaries who have been in the hospital for more than 24 hours must receive a written notification from the healthcare provider that informs them that they have been place in observation status. This notification must be furnished within 36 hours of when the patient is placed in outpatient observation status, and mu

Read More