Can Critical Access Hospitals (CAHs) operate a Distinct Part Unit (DPU)?
Effective Oct. 1, 2004, CAHs are granted the authority to have psychiatric and rehabilitation DPUs. DPUs may not exceed 10 beds and do not count toward the CAH bed limit. 2. Can CAHs operate a Skilled Nursing Facility (SNF)? Yes, CAHs may operate an SNF. 3. Some facilities have observation beds. Do these beds count toward the 25-bed limit? Observation beds do not count as inpatient beds. However, this answer applies only if the beds are actually used for observation. CAHs should be aware that the policies on coverage of observation services in hospitals (Hospital Manual section 239.6E) also apply to them. Services that could be covered under Part A, such as medically appropriate inpatient care, will not be covered as outpatient observation. Beds which are described as observation that are actually used for acute inpatient care will be counted toward the bed size limit. 4. Does an observation day count in the annual 96-hour average limit? No, the time a patient spends in an observation
