Newsmakers May 16-29: Banner Health, others sue MediCare

A new rule designed to reduce costs and limit charges to outpatients so irked the hospital community that many institutions – including Banner Health, which has a heavy presence in Northern Colorado – jointly filed suit in April against the U.S. Department of Health and Human Services.

Under the “two midnights rule” imposed by the Centers for Medicare and Medicaid Services, Medicare will not reimburse the hospital at inpatient rates unless a patient has stayed for two consecutive midnights. The patients must be classified and charged on an outpatient…