The COVID-19 Impact on Custodial Admissions

The pandemic is driving a shortage of hospital beds.

Patients presenting to hospitals via the emergency department due to an inability to care for themselves (or other’s ability to care for them) is not new. But the COVID-19 pandemic has added a slew of new concerns and obstacles for hospitals across the country.

As discussed in my two other articles about this topic, these patients don’t have medical conditions that require hospitalization. But there is a need for assistance with ambulation, activities of daily living, and perhaps overall supervision and monitoring for safety.

When alternative options can’t be arranged within a few hours, while the patient is in the emergency department, there’s no option other than hospitalization.  This means there is one less bed for a patient who truly requires medical attention. This not only exacerbates the strain on facilities that are already overrun with patients presenting with and being hospitalized for suspected or confirmed COVID-19, but it also poses a more grave threat to those patients hospitalized for custodial care. Hospitals were dangerous places before, but the danger is even greater in the face of such an infectious agent.

The Centers for Medicare & Medicaid Services’ (CMS’s) temporary hold on the three-midnight rule was a terrific development for patients and those planning their discharges. With CMS agreeing to pay for Skilled Nursing Facility (SNF) care without three hospital midnights in inpatient status, it should be much simpler for case management and social work staff to transfer qualified patients out of the hospital. But guidelines from the Centers for Disease Control and Prevention (CDC) on transfer of patients from a hospital to another skilled care facility have complicated matters. Many case managers have found that even if the patient admitted for custodial care is not suspected to have SARS-CoV-2, the virus causing COVID-19, a single report of elevated temperature, intermittent cough, or rhinorrhea can throw a wrench into the works.

The CDC recommends a test-based strategy and a non-test-based strategy for determining when a patient can be transferred to another facility from the hospital. For those health systems that continue to have limited testing capabilities, the non-test-based strategy leads to at least a 72-hour wait time, and possibly as long as one week. That’s 3-7 days a patient admitted for custodial care might remain hospitalized – putting the patient at risk for nosocomial infection, and resulting in fewer beds being available for those who need hospital care.

Previously, I detailed the manner in which patients covered by Medicare Fee-For-Service (FFS), and possibly also managed Medicare plans, can be given an Advanced Beneficiary Notice (ABN) or Hospital-Issued Notice of Non-Coverage (HINN). These CMS forms notify the patient that they will be responsible for the cost of services provided during the custodial admission. But what if an elderly and frail patient’s sole caregiver is sick with COVID-19? What if there are no accepting facilities, due to issues with virus containment? These scenarios might lead your hospital leadership to think twice about using the notices, so I advise you to double-check and make sure.

Facebook
Twitter
LinkedIn

Juliet Ugarte Hopkins, MD, ACPA-C

Juliet B. Ugarte Hopkins, MD, ACPA-C is Medical Director of Phoenix Medical Management, Inc., Immediate Past President of the American College of Physician Advisors, and CEO of Velvet Hammer Physician Advising LLC. Dr. Ugarte Hopkins practiced as a pediatric hospitalist for a decade and then developed the physician advisor role for case management, utilization, and clinical documentation at a three-hospital health system where she worked for nearly another decade. She is a member of the RACmonitor editorial board, author, and national speaker.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Accurately determining the principal diagnosis is critical for compliant billing, appropriate reimbursement, and valid quality reporting — yet it remains one of the most subjective and error-prone areas in inpatient coding. In this expert-led session, Cheryl Ericson, RN, MS, CCDS, CDIP, demystifies the complexities of principal diagnosis assignment, bridging the gap between coding rules and clinical reality. Learn how to strengthen your organization’s coding accuracy, reduce denials, and ensure your documentation supports true medical necessity.

December 3, 2025
Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Mastering Principal Diagnosis: Coding Precision, Medical Necessity, and Quality Impact

Accurately determining the principal diagnosis is critical for compliant billing, appropriate reimbursement, and valid quality reporting — yet it remains one of the most subjective and error-prone areas in inpatient coding. In this expert-led session, Cheryl Ericson, RN, MS, CCDS, CDIP, demystifies the complexities of principal diagnosis assignment, bridging the gap between coding rules and clinical reality. Learn how to strengthen your organization’s coding accuracy, reduce denials, and ensure your documentation supports true medical necessity.

December 3, 2025

Proactive Denial Management: Data-Driven Strategies to Prevent Revenue Loss

Denials continue to delay reimbursement, increase administrative burden, and threaten financial stability across healthcare organizations. This essential webcast tackles the root causes—rising payer scrutiny, fragmented workflows, inconsistent documentation, and underused analytics—and offers proven, data-driven strategies to prevent and overturn denials. Attendees will gain practical tools to strengthen documentation and coding accuracy, engage clinicians effectively, and leverage predictive analytics and AI to identify risks before they impact revenue. Through real-world case examples and actionable guidance, this session empowers coding, CDI, and revenue cycle professionals to shift from reactive appeals to proactive denial prevention and revenue protection.

November 19, 2025

Proactive Denial Management: Data-Driven Strategies to Prevent Revenue Loss

Denials continue to delay reimbursement, increase administrative burden, and threaten financial stability across healthcare organizations. This essential webcast tackles the root causes—rising payer scrutiny, fragmented workflows, inconsistent documentation, and underused analytics—and offers proven, data-driven strategies to prevent and overturn denials. Attendees will gain practical tools to strengthen documentation and coding accuracy, engage clinicians effectively, and leverage predictive analytics and AI to identify risks before they impact revenue. Through real-world case examples and actionable guidance, this session empowers coding, CDI, and revenue cycle professionals to shift from reactive appeals to proactive denial prevention and revenue protection.

November 25, 2025

Trending News

Featured Webcasts

Surviving Federal Audits for Inpatient Rehab Facility Services

Surviving Federal Audits for Inpatient Rehab Facility Services

Federal auditors are zeroing in on Inpatient Rehabilitation Facility (IRF) and hospital rehab unit services, with OIG and CERT audits leading to millions in penalties—often due to documentation and administrative errors, not quality of care. Join compliance expert Michael Calahan, PA, MBA, to learn the five clinical “pillars” of IRF-PPS admissions, key documentation requirements, and real-life case lessons to help protect your revenue.

November 13, 2025
Surviving Federal Audits for Inpatient Rehab Facility Services

Surviving Federal Audits for Inpatient Rehab Facility Services

Federal auditors are zeroing in on Inpatient Rehabilitation Facility (IRF) and hospital rehab unit services, with OIG and CERT audits leading to millions in penalties—often due to documentation and administrative errors, not quality of care. Join compliance expert Michael Calahan, PA, MBA, to learn the five clinical “pillars” of IRF-PPS admissions, key documentation requirements, and real-life case lessons to help protect your revenue.

November 13, 2025

Trending News

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24