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Hospital patient status: observation vs. inpatient

http://magazine.angieslist.com/hospitals/articles/patients-paying-more--under-observation-.aspx

If you're on Medicare, nursing home costs following a hospital stay are covered if you are "admitted" to the hospital, but are not covered if you are in the hospital for "observation."

The first comment on the article, by one Edwin Bradley MD, states "In general the care one receives in 'observation' is not as good as in the fully staffed hospital bed." I wonder if that is true generally.

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