Improved Use of Hospital Observation Units Could Save $3.1B

Research published in Health Affairs suggests increased use of hospital observation units could help save $3.1 billion in healthcare costs each year.

A hospital observation unit is a dedicated space usually near or within an emergency department. Approximately one-third of hospitals house an observation unit. The rising demand of acute care has contributed to overcrowding in emergency departments, an expensive source of healthcare services.

For the study, researchers conducted a systematic review to determine average cost savings per observation unit visit. Researchers found use of hospital observation units could save hospitals $4.6 million annually and more than $3 billion nationally.

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