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Hospital Readmissions (AmeriHealth New Jersey)
00.01.47d

Policy

This policy applies to participating hospitals and hospital health systems reimbursed based on DRG/case rate methodologies. The policy does not apply to participating hospitals and hospital health systems reimbursed on a per diem basis. The policy does not apply to non-participating hospitals and hospital health systems. 



READMISSION WITHIN 30 DAYS OF INPATIENT DISCHARGE 


Acute care hospital stays (i.e., both inpatient and observation stays) to the same acute care hospital, or an acute care hospital within the same health system, within 30 days of discharge from the previous inpatient stay and/or for a condition related to the original inpatient stay (e.g., the same major diagnostic category [MDC], a post-operative infection, sepsis, or complication diagnosis), are not eligible for separate reimbursement when each hospital stay is paid per DRG or case rate. This will eliminate the payment of multiple case rates for a single clinical event. 

For purposes of reimbursement, when the above criteria are met, the Company will treat all acute care hospital stays as a single clinical event. The claim with the higher payment will remain in place, and the claim(s) for the other related stays(s) will be retracted post payment. ​


CLAIM RETRACTIONS 

Claim retractions will occur based on a retrospective claim audit review. Hospitals will be notified prior to any retrospective claim retraction and will be afforded the facility audit review process for dispute resolution.


POLICY EXCEPTIONS 


This policy does not apply to the services listed below:

  • Maternity and newborn care, with the exception of subsequent stays (e.g., readmission) for a condition directly related to the delivery, such as infection, post C-section ileus or other C-section or vaginal delivery complications
  • Planned elective hospital stays (e.g., chemotherapy) 
  • Transplant services
  • Acute care transfers from one institution to another within the same health system 
  • A condition unrelated to the original inpatient stay 
  • Discharge from the hospital against medical advice
  • Behavioral health, psychiatric, and/or drug and alcohol hospital stays 
  • Acute physical rehabilitation


REQUIRED DOCUMENTATION 


At the request of the Company or one of its affiliates, the hospital(s)​ must submit medical records and supporting documentation pertaining to the original inpatient stay and subsequent stay(s). Medical records requested must include the following information:

  • Admission and discharge summaries
  • Physician orders
  • Emergency room records
  • Progress notes
  • Nurse notes
  • Laboratory and diagnostic testing reports
  • History and physical

Guidelines

The Company’s reimbursement policy for hospital readmissions will be reviewed on an ongoing basis. This review may result in changes to the current policy application (e.g., from post-pay to pre-pay).

Description

According to the Centers for Medicare and Medicaid Services (CMS), acute care hospital readmissions may result from actions taken or omitted during a member's initial acute care hospital stay. Historically, nearly 20% of all hospital discharges have had a readmission within 30 days. 

READMISSION WITHIN 30 DAYS OF INPATIENT DISCHARGE 


Readmission within 30 days of discharge, for the purposes of this policy, is an unplanned acute care inpatient admission or observation stay at an acute care hospital within 30 days of the previous inpatient stay for a condition related to the original inpatient stay (e.g., same major diagnostic category [MDC], post-operative infection, sepsis, or complication diagnosis). 

The 30-day readmission provision includes the day of discharge and the following ​30 calendar days. 

Observation stays are acute care hospital stays for observation services. Observation services are considered an outpatient service and involve the use of a hospital bed with periodic monitoring by nursing or ancillary staff to evaluate and treat an individual’s condition or to determine the need for a possible inpatient admission. 

Multiple readmissions under the 30-day readmission provision consist of two or more unplanned acute care hospital stays within 30 days from the most recent inpatient date of discharge, and are for a condition related to the most recent inpatient hospital stay (e.g., the same major diagnostic category [MDC], a​ post-operative infection, sepsis, or complication diagnosis). 


References

Centers for Medicare & Medicaid Services (CMS). Medicare Claims Processing Manual. Chapter 3: Inpatient Hospital Billing. §40: Billing Coverage and Utilization Rules for PPS and Non-PPS Hospitals,​ p. 91. [CMS Web site]. 08/14/25. Available at: http://www.cms.gov/manuals/downloads/clm104c03.pdf. Accessed February 27, 2026​. 

Centers for Medicare & Medicaid Services (CMS). Medicare Learning Network. Acute Care Hospital Inpatient Prospective Payment. [CMS Web site]. January 2026. Available at: https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNProducts/html/medicare-payment-systems.html. Accessed February 27, 2026.

Coding

CPT Procedure Code Number(s)
N/A

ICD - 10 Procedure Code Number(s)
N/A

ICD - 10 Diagnosis Code Number(s)
N/A

HCPCS Level II Code Number(s)
N/A

Revenue Code Number(s)
N/A



Coding and Billing Requirements


Policy History

Revisions From 00.01.47d:
07/01/2026
Thi​s version of the policy will become effective 07/0​1/2026. 

Policy number 00.01.47d has been updated to communicate the Company's revised reimbursement position that inpatient readmissions and observation stays within 30 days of inpatient discharge for a related condition are not eligible for separate reimbursement.

Revisions From 00.01.47c:
08/07/2024
This policy has been reissued in accordance with the Company's annual review process.
11/17/2021
This policy has been reissued in accordance with the Company's annual review process.
11/20/2019
The policy has been reviewed and reissued to communicate the Company’s continuing position on Inpatient Hospital Readmission.

Effective 10/05/2017 this policy has been updated to the new policy template format.
7/1/2026
7/1/2026
00.01.47
Claim Payment Policy Bulletin
Commercial
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