Spokesman Steve Whitmore of the Los Angeles County Sheriff's Department made the announcement at a hastily called news conference early Thursday morning outside the Century Regional Detention Facility to answer reporters' questions about the famous inmate.
Hilton left the jail shortly after midnight and was "reassigned" to the home confinement as opposed to the Los Angeles County Jail.
Whitmore said a medical situation played a part in the decision to have Hilton confined to her home, but added that privacy regulations prohibitted him from going into more detail about the specifics of the condition.
Hilton had been set to spend 3 weeks in jail as part of a reduction from her original sentence.
As part of her agreement, she will spend 40 more days in confinement at her home, taking the time she spends in custody back up the sentence originally handed down by the court.
Whitmore said the judge who handed down the original sentence had been consulted about the changes to her incarceration.
Hilton checked into the facility Sunday night to begin serving a more than three-week sentence for violating probation in an alcohol-related reckless driving case.
The 26-year-old hotel heiress surrendered to authorities with little fanfare after a surprise appearance earlier that day at the MTV Movie Awards, where she worked the red carpet in a strapless designer gown.
She was held in a special unit where she was spending 23 hours a day in a solitary cell, her lawyer said.
After she checked in, sheriff's spokesman Steve Whitmore said Hilton's demeanor was helpful.
"She was focused; she was cooperative," he said.
Hilton's lawyer, Richard Hutton, said Monday after his client's first night in jail that she was doing well under the circumstances.
The star of "The Simple Life" reality TV show pleaded no contest to a reckless-driving charge in January and was sentenced to 36 months' probation. When she was later pulled over by the California Highway Patrol, Hilton was told that she was driving on a suspended license and signed a document acknowledging she was not to drive. She was then pulled over by sheriff's deputies on Feb. 27 and charged with violating probation.
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