Dive Brief:
- A new study appearing in JAMA Internal Medicine has concluded that patents on observation status cost hospitals money.
- According to study data drawn from the University of Wisconsin Hospital and Clinics, observation care cost an average of $331 per patient, while inpatient care showed an average profit of $2,163 per patient.
- Observation status patients had 1,141 different diagnoses, and the average length of stay was 33.3 hours.
Dive Insight:
While CMS has a defined description for outpatient status patients—notably, care that lasts less than 24 hours—observation status is all over the map here. It seems likely that hospitals will have to adapt differently than they have to observation status. Losing money hand over fist isn't sustainable.