This provision applies to hospitals excluded from IPPS. The hospitals and units that are excluded from IPPS
are: psychiatric hospitals and units; inpatient rehabilitation facilities (IRF) and units; long term care hospitals
(LTCH); children’s hospitals; and cancer hospitals.
Diagnostic services (including clinical diagnostic laboratory tests) provided to a beneficiary by the admitting
hospital, or by an entity wholly owned or wholly operated by the admitting hospital (or by another entity under
arrangements with the admitting hospital), within 1 day prior to and including the date of the benefi ciary’s
admission are deemed to be inpatient services and included in the inpatient payment, unless there is no Part
A coverage.
Note: For hospitals and units excluded from IPPS, this provision applies only to services furnished within one
day prior to and including the date of the benefi ciary’s admission.
Critical Access Hospitals (CAHs) are not subject to the 3-day (nor 1-day) DRG payment window.