Hospital Observation Services on the Rise

Share Article

The Center for Health Affairs' most recent Key Indicators Report showed a 19 percent increase in hospital observation services in the third quarter of 2013.

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


As the leading advocate for Northeast Ohio hospitals, The Center for Health Affairs provides members with vital services and resources aimed at enhancing the region’s healthcare community. The Center delivers on this goal by focusing its efforts on areas that benefit from a regional approach: Healthcare Workforce; Emergency Preparedness; Public Policy & Advocacy; Finance & Reimbursement; and Community Initiatives. With a rich history as the Northeast Ohio hospital association, dating back to 1916, The Center serves as the collective voice of hospitals and the source for Northeast Ohio hospital and healthcare information. As leaders, we continuously scan the periphery, looking for opportunities to enhance the region’s workforce, better prepare our hospitals for an emergency, and increase the region’s wage index. And because of our business affiliation with CHAMPS Healthcare, we have the resources to provide a broad level of professional services to our members. The Center, located in downtown Cleveland, is proud to advocate on behalf of 38 acute-care hospitals and two long-term acute-care hospitals in six counties. For more, visit

Share article on socal media or email:

View article via:

Pdf Print

Contact Author

Deanna Moore
since: 09/2010
Follow >
The Center for Health Affairs
since: 08/2010
Like >
The Center for Health Affairs / CHAMPS Healthcare

Visit website