News Releases

Hospital Observation Services on the Rise

The most recent Key Indicators Report showed a 19 percent increase in hospital observation services in the third quarter of 2013. According to the report, recent news stories have highlighted hospital patients who were displeased because they were unaware of the financial implications of their hospital observation services. Though the cost of providing observation services is often less than providing inpatient services for both the patient and the hospital, observation status is considered an outpatient service and is thus subject to Medicare Part B co-payments, which is sometimes surprising to patients. 

This trend should come as no surprise to The Center’s members, who together have seen observations increase by almost 36 percent over the last decade. The report also highlights possible factors contributing to the trend as well as implications it may have for healthcare policy. 

The Key Indicators Report provides analysis of the hospital market based on Volume Statistics data. More information on the rise of hospital observation services is available by contacting George Jeney via email or at 216.255.3666.