The Centers for Medicare & Medicaid Services has announced their auditors would hold off on assessing punitive fees to hospitals found to be out of compliance with the 'two midnight' rule, which is part of the 2014 Inpaient Perspective Payment System rule, until after Sept. 30. 

Originally, auditors were to begin enforcing the rule at the end of the first quarter, but the recent announcement gives hospitals an extra six months to make sure the rule is properly applied. The move came after great outcry from physicians and hospitals.

In a statement, the American Hospital Association noted, "We are pleased that CMS has extended its enforcement moratorium on the two-midnight policy for an additional six months, as the AHA has urged. This action clearly recognizes that there are still many unanswered questions about the policy. At the same time, we continue to urge CMS to fix the critical flaws of the underlying policy by immediately engaging stakeholders to find a workable solution that addresses the reasonable and necessary inpatient-level services currently provided by hospitals to Medicare beneficiaries that are not expected to span two midnights."

For more information on the 'two-midnight' rule, refer to the Medical News article (December 2013), "Two-Night Minimum" available here.