The Centers for Medicare and Medicaid Services (or CMS as it is commonly known) recently announced on January 31st a six-month delay on what has come to be known as the Two-Midnight Rule. The Two-Midnight rule is somewhat complex; it basically governs when a patient can be processed as an inpatient admission. The details are rather arcane, but the net effect of the six-month delay is that it will alleviate some of the near-term pressures facing hospitals as a result of low utilization levels. For major hospital company Tenet Healthcare (NYSE:THC), the rule is a modest positive.
Tenet like most hospital chains has been suffering a double-headwind recently, and the rule delay is not enough to fix that....
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