2.4 Levels of Care and Care-Setting Transitions

Key Takeaways

  • Medicare hospice pays one of four levels of care each day: Routine Home Care, Continuous Home Care, Inpatient Respite Care, or General Inpatient Care.
  • Continuous Home Care is a brief crisis benefit to keep the patient at home: at least 8 hours in a 24-hour day beginning and ending at midnight, predominantly nursing, with more than half of the hours provided by an RN, LPN, or LVN — not private-duty staffing.
  • CMS does not reimburse inpatient respite for more than five consecutive days at a time; respite relieves family or other caregivers, not uncontrolled symptoms.
  • General Inpatient Care is for pain control or acute or chronic symptom management that cannot be managed in other settings, including home with Continuous Home Care.
  • Live discharge from hospice includes no longer terminally ill (improved), revocation, transfer to another hospice, and moving out of the service area, plus the rare discharge-for-cause pathway after reasonable efforts.
Last updated: August 2026

2.4 Levels of Care and Care-Setting Transitions

Medicare hospice is a benefit with four payment levels, not a building. The CHPN is the clinician who notices that Routine Home Care is no longer enough — or that GIP is being requested for the wrong reason — and who translates that into an IDG decision and a setting change. CMS pays only one of the four levels for any particular day. Domain 1 items mix clinical acuity with these payment definitions because the wrong level is both a quality failure and a compliance failure.

The four Medicare hospice levels

LevelWhere it happensWhy it existsWhat it is not
Routine Home Care (RHC)Home, assisted living, or a nursing facility as the patient's residenceDay-to-day hospice when the person is not in a billed crisis or inpatient stayNot 24-hour private-duty nursing
Continuous Home Care (CHC)Not in an inpatient facility; at home during a crisisBrief, predominantly nursing care to palliate an acute medical crisis and keep the person at homeNot scheduled private duty, not caregiver vacation, not a response to loneliness
Inpatient Respite CareMedicare-participating hospital, hospice inpatient unit, or nursing facility that meets CMS inpatient nursing standardsShort-term relief for family members or other persons caring for the individualNot the level for uncontrolled pain; not unlimited consecutive weeks
General Inpatient Care (GIP)Hospice inpatient unit, hospital, or skilled nursing facility that meets 24-hour nursing standards in 42 CFR 418.110Pain control or acute or chronic symptom management that cannot be managed in other settingsNot imminent death alone, not lack of a caregiver, not a wedding-weekend hotel

RHC is the level on the large majority of hospice days. Intensity of nursing visits on RHC still varies: a new admission and an actively dying patient both may be RHC if CHC hour thresholds and GIP-level symptoms are not met.

Continuous Home Care in detail

42 CFR 418.204(a) covers nursing on a continuous basis during periods of crisis as necessary to maintain the individual at home. A crisis is a period in which the individual requires continuous care to achieve palliation and management of acute medical symptoms. Homemaker or hospice aide services may be covered during the crisis, but care must be predominantly nursing.

Payment rules in 42 CFR 418.302 and the Medicare Benefit Policy Manual make the hour test concrete:

  • A minimum of 8 hours of care must be furnished on that day to qualify for the CHC rate
  • The 24-hour day begins and ends at midnight
  • Hours need not be consecutive (4 hours in the morning and 4 hours in the evening can count)
  • Services must be predominantly nursing care by an RN, licensed practical nurse, or licensed vocational nurse — more than half of the hours of care
  • Aide or homemaker time may supplement but cannot dominate the day
  • Social work hours do not count toward the CHC hour total

CHC is not private duty. Families often ask for a 24-hour aide because they are exhausted while symptoms are actually stable. That is a caregiver-support problem: extra RHC visits, after-hours coaching, volunteer presence, social-work planning, or inpatient respite — not an indefinite CHC order. If symptoms cannot be managed at home even with a nursing-predominant crisis response, the correct level is GIP, not more aide hours billed as CHC.

Caregiver collapse can contribute to a crisis when the caregiver had been providing a skilled level of care and cannot continue, but the documentation must still show a medical crisis and predominantly nursing hours, not a staffing agency substitute.

Inpatient respite

Respite is short-term inpatient care provided only when necessary to relieve family members or other persons caring for the individual. 42 CFR 418.204(b) states that respite may be provided only on an occasional basis and may not be reimbursed for more than five consecutive days at a time. Under payment rules, inpatient respite is paid for a maximum of five consecutive days at a time, including the date of admission but not counting the date of discharge; a sixth consecutive inpatient day, if the patient remains, is paid at the routine home care rate.

Respite facilities must provide 24-hour nursing services that meet the patient's needs. The hospice POC follows the patient. Respite is the right answer when the daughter needs surgery or is burned out and symptoms are otherwise manageable. Respite is the wrong answer when pain is uncontrolled — that is GIP.

General Inpatient Care

A GIP day is a day on which the individual receives general inpatient care in an inpatient facility for pain control or acute or chronic symptom management which cannot be managed in other settings. Other settings include home with RHC or CHC, assisted living, and a nursing facility on RHC. GIP requires a participating Medicare or Medicaid facility: a Medicare-certified hospice inpatient unit meeting 418.110, or a hospital or SNF that meets the specified 24-hour nursing and patient-area standards.

Typical GIP problems: rapid opioid titration with close monitoring, refractory dyspnea, agitated delirium that is unsafe at home, massive bleeding, or a symptom crisis after a failed CHC attempt. GIP ends when symptoms are controlled enough for another setting. Death during a GIP stay does not, by itself, prove the level was wrong or right; the indication is the symptom burden that could not be managed elsewhere, documented to the IDG.

Transfers among home, ALF, SNF, and GIP

Home to GIP: the CHPN describes the symptom that failed home management, not merely the family is scared. GIP back to home: confirm the caregiver can implement the new regimen, that equipment is in place, and that the POC visit frequency matches the still-fragile trajectory.

Assisted living and SNF: the residence can remain the RHC site. Hospice does not pay room and board for RHC in a facility (Medicaid or private pay often does). The CHPN case manager coordinates with facility nurses so hospice orders for the terminal illness are followed, PRN medications are available, and the facility calls hospice before sending the patient to an emergency department for an expected dying process.

If a facility demands transfer out because it cannot manage symptoms, that may be a GIP indication — or a need to change facilities — not a reason to revoke hospice.

Live discharge

Live discharge means the hospice election ends while the patient is alive. CMS-recognized pathways the CHPN must be able to distinguish:

  • No longer terminally ill (improved or stabilized) — hospice-initiated discharge under 42 CFR 418.26 when the IDG determines the patient is not terminally ill. Discharge planning, including counseling and education, is required before this discharge.
  • Revocation — patient- or representative-initiated under 42 CFR 418.28. It requires a signed statement with an effective date that cannot be earlier than the day the revocation is made. Original Medicare coverage of waived services resumes. The person may elect hospice again later if eligible.
  • Transfer to another hospice, or moving out of the hospice's service area — also listed in 418.26. Immediate transfer to another hospice is treated differently from a discharge that ends the benefit.
  • Discharge for cause — rare; used when behavior of the patient or others in the home is disruptive, abusive, or uncooperative to the extent that delivery of care is seriously impaired, and only after serious efforts to resolve the problem, documentation, and required notifications.

Do not label a frightened family's request to go back to the hospital as revocation until they have made an informed, signed choice. Do not call a GIP transfer a live discharge. Do not use live discharge as punishment for missing a visit.

The CHPN's job at any transition is the same Domain 1 habit: name the goal, match the level of care to the goal and the symptom burden, coordinate the IDG, and write the new setting onto the POC before the ambulance leaves.

Matching the problem to a Medicare hospice level (exam decision pattern)
Test Your Knowledge

A family on Routine Home Care asks the hospice to staff 24-hour aides indefinitely because they are exhausted. The patient's pain and dyspnea are stable on the current regimen. What should the CHPN explain?

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Test Your Knowledge

Which situation meets the CMS definition of General Inpatient Care?

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D
Test Your Knowledge

A primary caregiver needs short-term relief. The patient's symptoms are otherwise manageable at home. Which statement about Medicare hospice inpatient respite is accurate?

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B
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D