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This bill establishes a 2-year demonstration program allowing hospitals to provide outpatient observation services to Medicare beneficiaries in their homes. Participating hospitals would receive waivers from certain regulatory requirements (such as 24-hour on-premises nursing and physical environment standards) that normally apply to inpatient care, while maintaining equivalent standards of care and patient safety. The Secretary of Health and Human Services would study and report on the program's effects on quality, costs, readmission rates, and patient outcomes.
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