But during this time, another phenomenon was coming into focus:
increasing use of observation status. When a patient needs hospital
services, there are two options: that patient can be admitted for
inpatient care or can be “admitted to observation”. When patients are
“admitted to observation” they essentially still get inpatient care, but
technically, they are outpatients. For a variety of reasons, we’ve
seen a decline in patients admitted to “inpatient” status and a rise in
those going to observation status. These two phenomena – a drop in
readmissions and an increase in observation – seemed related.
