Home/Glossary/Observation StatusGlossary · CoverageObservation StatusAn outpatient designation at a hospital that does not count toward the 3-day inpatient qualifier for SNF coverage.Related TermsMedical NecessityAdvance Beneficiary Notice (ABN)Assignment of BenefitsBenefit Period ResetLifetime Hospital Psychiatric LimitSkilled NeedRUG / PDPM← Back to glossary index