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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) while maintaining the same standard of care as inpatient hospital treatment. The Secretary of Health and Human Services would conduct a study comparing quality, costs, and outcomes of home-based observation services to traditional hospital-based care, with results reported publicly.
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