A new law went into effect in Virginia this week that requires hospitals to inform patients if they are being held on observation status as opposed to being fully admitted as an inpatient. The law was passed in order to protect patients who may wind up with unexpected out-of-pocket costs if they were being held on observation status without their knowledge. The most common surprise cost is associated with Medicare patients held in observation who are then admitted directly to skilled nursing facilities. Under such a circumstances, Medicare won't pay for their nursing home care. Lawmakers in Maryland, Connecticut and New York have taken similar measures, according to the Daily Press. >> Read the full report at FierceHealthcare