Observation Unit Economics

With an aging population, the United States health care delivery system is struggling to handle an onslaught of chronic disease burden. The current process of regulatory oversight and pay-for-performance reimbursement is a reality in today's health care delivery system. To maintain profitability, facilities must be willing to implement new strategies that marry operational redesign, quality care, and cost-effective treatment. As payers increasingly favor outpatient strategies for patient management, inpatient facilities must develop effective strategies to shift inpatient care into ambulatory settings. This article presents a model, based on acute heart failure, that offers a solution that is fixed on process improvement techniques that levy positive economic impact.