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    v1.0.31
    OpenPayerPolicy UpdatesReimbursement/Payment PolicyeternalHealth hospital readmission policy update |…
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    CurrenteternalhealthPolicy N/A

    Hospital readmission reimbursement

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    This policy governs eternalHealth's reimbursement stance for inpatient hospital readmissions (within a 30-day window) for all products and network and non-network inpatient facilities and applies to all eternalHealth members.

    Policy Summary
    Payereternalhealth
    PolicyHospital readmission reimbursement
    Policy CodePolicy N/A
    Change TypeNo material change
    Effective DateN/A
    Last ReviewMay 4, 2026
    Next Review DateN/A
    Key ActionProviders may appeal/dispute readmission determinations by submitting medical records for both admissions for clinical review.
    SourceLink
    POLICY UPDATE CHANGES

    No material clinical or coverage changes in this revision.

    30 daysreadmission lookback window
    all productspolicy applicability
    deny/reducepossible financial actions
    CMS recordsclinical review
    listed

    OpenPayer is powered by Trek Health's payer performance platform. Trek continuously ingests, validates, and normalizes Transparency in Coverage data alongside payer policies and other commercial payer data to create a structured payer intelligence foundation. OpenPayer uses this foundation to deliver personalized search results, dynamically generated policy pages, and tailored policy monitoring based on each user's payers, specialties, billing codes, and areas of interest. The same intelligence powers broader payer performance workflows, including reimbursement benchmarking, contract evaluation, payer negotiations, and financial decision-making.

    explicit exclusions

    Readmission Coverage Criteria and Billing Rules

    Readmission coverage criteria and billing rules

    eternalHealth will not separately reimburse readmissions determined to be the same, similar, or related within 30 days of discharge unless exclusions, coding, contractual, or regulatory requirements indicate otherwise. Separate reimbursement or exclusions apply when the following criteria are met:

    Acceptable reasons for separate reimbursement (Any one of the following)

    • Readmission is unrelated to the initial admission

      Allows separate reimbursement when clinical review finds no relation to prior admission.

    • Readmission is medically necessary and unavoidable due to complications not reasonably preventable

      Clinical review determines necessity and unavoidability based on records.

    • Readmission required for a planned staged procedure or treatment

      Providers must combine with the initial admission and report occurrence span code 74 on the UB-04 when applicable.

    • Transfer to another acute care facility to receive care not available at the first facility

      Transfers for higher level or specialized care are excluded from readmission denial.

    • Readmission for unrelated trauma or a new diagnosis

      New, unrelated diagnoses or trauma are eligible for separate reimbursement.

    • Readmissions due to patient non-compliance or social determinants beyond provider control

      When factors outside provider control cause readmission, separate reimbursement may be allowed.

    Same-day readmissions that are unrelated to the initial admission must be reported with Condition Code B4 on the UB-04 to be eligible for separate reimbursement

    See coding requirements for same-day claims.

    Planned readmissions or leaves of absence within 30 days must be combined with the initial admission and reported on the same UB-04 with Occurrence Span Code 74 (report dates leave began and ended)

    When combined, only one DRG will be reimbursed; submit one bill for covered and leave days.

    Admissions for covered transplant services during the global case rate period are excluded from this readmission policy (handled under transplant global rate)
    Admissions to a substance abuse unit or inpatient rehabilitation unit are excluded from this readmission policy
    Readmission following discharge against medical advice is excluded from readmission denial review
    Readmissions resulting from Never Events or Severe Reportable Events will not be reimbursed

    eternalHealth will not reimburse for events defined by the National Quality Forum/CMS.

    If readmission is determined to be related and preventable, eternalHealth may deny payment in full or apply a financial penalty (reduced payment or bundled payment adjustment)

    Licensed clinical medical review and clinical criteria are used to determine relatedness and preventability.

    eternalHealth may look back within the maximum allowed recovery time per state guidelines or specific provider contract to identify readmissions

    Administrative recovery or recoupment actions may follow for claims that meet readmission guidelines.

    Medical records may be requested and reviewed consistent with CMS guidelines to determine reimbursement eligibility

    Providers must submit records for both admissions when appealing/disputing a readmission determination; clinical review will evaluate infection/complication, failed surgical intervention, acute decompensation of chronic disease, preventable needs, or premature discharge as potential indicators.

    When calculating the 30-day readmission window, neither the day of discharge nor the day of admission is counted; intervening non-acute admissions do not affect readmission designation

    Use the 30-day lookback from date of discharge excluding discharge and admission days.

    Readmission to the same hospital for the same, similar, or related condition on the same date of service is considered a continuation of the initial treatment and is not separately payable

    eternalHealth does not allow payment for the first admission when a same-date readmission for the same/similar diagnosis occurs; readmissions on the same date for symptoms related to the prior stay should be combined.

    Claim Coding and Readmission Timing Rules

    Claim form coding for exclusions/eligibilitymixedCovered
    Occurrence Span Code 74Report planned readmission/leave of absence dates on the UB-04 when combining with initial admission.
    Condition Code B4Report same day readmissions unrelated to initial admission to be eligible for separate reimbursement.
    30-day calculation rule
    30-day calculation ruleNeither the day of discharge nor the day of admission is counted when calculating the 30-day readmission window.
    Lookback window length30 days (calculated excluding discharge and admission days).
    Intervening non-acute admissionsAdmissions to non-acute facilities (e.g., skilled nursing) do not affect the 30-day designation.

    Appeals, Medical Record Submission, and Operational Steps

    Prior Authorization

    Appeal/Dispute — Submit Medical Records for Both Admissions

    If you disagree with eternalHealth's readmission determination, you may appeal or dispute the decision by submitting complete medical records for both the initial and subsequent admissions so eternalHealth can perform a clinical review to determine whether the second admission is a readmission of the first.

    • Submit medical records for both admissions for review.
    • eternalHealth will use licensed clinical medical review and clinical criteria (e.g., infection/complication of care, failed surgical intervention, acute decompensation of chronic disease, premature discharge) to evaluate readmission status.
    • eternalHealth may look back within the maximum recovery time allowed by state guidelines or provider contract when identifying readmissions.
    Documentation Required

    Medical Record Review per CMS — Records May Be Requested to Determine Reimbursement

    Key Definitions

    Initial Admission
    DefinitionInitial Admission: An inpatient admission at an acute, general, or short-term hospital, or another hospital in the same hospital system used to determine whether a subsequent admission occurs within 30 days.
    ScopeApplies when the date of discharge from the initial admission is used to assess whether a later admission is a readmission within the 30-day window.
    Related hospitalsAdmissions at a 'related hospital' (same hospital system) are included in determining readmission status.
    Readmission
    DefinitionReadmission: An inpatient admission to any acute facility occurring within 30 days of the date of discharge from a prior inpatient admission.
    Effect of intervening careIntervening admissions to non-acute care facilities do not affect designation of an admission as a readmission.
    Policy Summary
    Payereternalhealth
    PolicyHospital readmission reimbursement
    Policy CodePolicy N/A
    Change TypeNo material change
    Effective DateN/A
    Last ReviewMay 4, 2026
    Next Review DateN/A
    Key ActionProviders may appeal/dispute readmission determinations by submitting medical records for both admissions for clinical review.
    SourceLink
    On This Page
    Readmission Coverage Criteria and Billing RulesClaim Coding and Readmission Timing RulesAppeals, Medical Record Submission, and Operational StepsKey Definitions

    eternalHealth may request and review medical records consistent with CMS guidelines to determine whether a readmission is eligible for separate reimbursement; reimbursement will only be allowed when the readmission is found to be unrelated, medically necessary/unavoidable, planned/staged, a required transfer, due to unrelated trauma/new diagnosis, or caused by factors outside provider control.

    • Medical record requests and review follow CMS guidelines.
    • Readmission will be reimbursed only if determined to be: unrelated to the initial admission; medically necessary and unavoidable; required for a planned staged procedure; a transfer for services not available at the first facility; for unrelated trauma/new diagnosis; or due to patient factors beyond provider control.
    • If readmission is related and preventable, eternalHealth may deny payment or apply a financial penalty (reduced or bundled payment adjustment).
    Calculation noteFor the 30-day window calculation, neither the day of discharge nor the day of admission is counted.
    Same Day Readmission
    DefinitionSame Day Readmission: An admission to an acute care hospital on the same day as the previous admission's discharge.
    Same-date continuityReadmissions on the same date for symptoms related to the prior stay are considered part of the original admission and should be combined.
    Billing implicationSame-date continuation is not separately payable (treated as continuation of initial treatment).
    Planned Readmission / Leave of Absence
    DefinitionPlanned Readmission/Leave of Absence: Readmissions that are part of a planned staged procedure or a leave of absence within 30 days are considered a single admission and reimbursed as one DRG.
    Billing instructionProviders must submit one bill for covered days and days of leave when the patient is ultimately discharged and report occurrence span code 74 when combining with the initial admission.
    Same-day related returnsReadmissions occurring on the same day for evaluation/management of the prior stay's condition are part of the original admission and should be combined.
    Transfer
    DefinitionTransfer: Movement of a patient from one acute facility to another for specialized care, higher-level care, or lack of resources/services at the sending facility.
    Scope of transfersTransfers can occur between hospitals, to rehabilitation centers, or to long-term care facilities and typically involve case management coordination.
    RestrictionA transfer must not be used to prevent readmission reduction review (i.e., transfers cannot be used to avoid reimbursement restrictions).
    Never Event / Severe Reportable Event
    DefinitionNever Event / Severe Reportable Event: Serious, preventable adverse events (per National Quality Forum/CMS) that should never happen to a patient.
    Reimbursement implicationeternalHealth will not reimburse for readmissions resulting from Never Events/Severe Reportable Events; the organization may reduce payments or seek recovery as appropriate.
    State variationState-specific definitions and handling may apply (e.g., Massachusetts defines SREs under state law; Arizona follows NQF/CMS).