ED Observation Units With Treatment Protocols Reduce Costs, Readmissions

Patients treated in emergency department "type 1" observation units, dedicated units with certain condition-specific treatment protocols, see significant reductions in cost, length of stay and readmissions, according to a study in Health Affairs.

The study compared retrospective data from three Atlanta hospitals that have a type 1 observation unit. Patients receiving observation status care in ED type 1 observation units saw a 23 to 28 percent shorter length of stay, 17 to 44 percent lower chance of readmission and $950 million potential national cost savings compared to observation patients treated elsewhere in the hospital.

The authors suggest that 11.7 percent of short stay patients nationwide could be treated in a type 1 observation unit, which they estimate could save $5.5 billion to $8.5 billion annually.

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