The Medicare Payment Advisory Commission today discussed two topics it expects to make draft recommendations on when it meets in March – hospital short-stay policy issues and next steps in measuring quality of care in Medicare. The hospital short-stay discussion focused on reducing payment differences between observation and inpatient stays of one and two-plus days; reducing the burden of Recovery Audit Contractor reviews and increasing RAC accountability; and protecting beneficiaries in relation to the three-day inpatient qualifying requirement for skilled nursing care and liability for self-administered drugs. The quality discussion focused on the commission's efforts to develop a population-based outcome measure to assess patients' “healthy days at home,” meaning the number of days without inpatient or certain post-acute care services, and considered which entities would be most appropriate to assess with the measure as well as risk adjustment issues.