When Medicare observation cases that should be inpatient are not corrected before discharge, hospitals can miss reimbursement, create extra work for care teams, and cause more confusion for patients about coverage and next steps.
Sound Two-Midnight Monitoring helps hospitals act sooner, while the patient is still in the hospital.

The impact: Sound Midnight Monitoring
$543K
Average additional annual Medicare revenue per hospital in 2025
10.8%
Relative reduction in the average hospital observation rate after program implementation
95%
Inpatient recommendations for Medicare Advantage †
121
Hospitals implemented; average of 222 beds for Traditional Medicare and 218 beds for Medicare Advantage
The pressure is real. So is the cost of waiting.
When a status issue is discovered after discharge, revenue may already be lost. Appeals and follow-up work increase. And discharge planning can become more complicated for teams and patients alike.
We take a different approach.
Sound Two-Midnight Monitoring is not a separate add-on service layered in after the fact. It’s built into the way Sound Hospital Medicine works.
Hospitalists get real-time support from physician advisors while the case is still active. That means:
- Earlier status clarity
- Fewer late chart fixes
- Less appeal work from hospital teams
- Better support for discharge planning
- Fewer patient surprises about coverage and next steps
See how Sound Midnight Monitoring works
Explore how our model helps hospitals capture earned revenue sooner, reduce rework later, and create a clearer path for teams and patients before discharge.
† Ultimately adjudicated as inpatient after peer-to-peer review and appeals handled by Sound. Based on Sound internal data: $244,862 per hospital per year for Traditional Medicare; $298,239 per hospital per year for Medicare Advantage. Past performance is not a guarantee of future results.
