This Fall, we will help our partner Shady Grove Adventist Hospital launch an Observation Medicine Unit aimed at reducing one day admissions and re-admissions. Over $15 billion a year is spent each year on these types of hospital admissions. A majority of this money is spent on Medicare patients, and according to a Medicare Payment Advisory Commission study, 75% of those re-admissions are preventable.
This means Observation Medicine has the potential to save the healthcare system billions each year. Healthcare reform has also led hospitals to place more emphasis on reducing hospital one day stays and utilization in favor of better outpatient management and resources.
The Shady Grove Adventist observation unit will be the 2nd one we’ve has opened in partnership with the hospitals it serves. We already operate an Observation Medicine unit at Western Maryland Health System in Cumberland, MD.
These kinds of observation units have been shown to increase compliance with regulatory requirements, increase hospital turn-a-round times, and have high quality outcomes. Furthermore, studies have proven that dedicated observation units can have a dramatic impact on the expenses associated with one day stays and re-admissions.
The intent of the Shady Grove program is to work in partnership with the hospital, primary care physicians, physician sub-specialists, and hospital administration. Patients are frequently monitored by healthcare providers, who follow specific charting guidelines and have as their goal to discharge patients within 23 hours.
Patients will be placed in observation from the ED based on specific diagnostic criteria, including chest pain, mild asthma, dehydration, minor infections, non-surgical abdominal pain and others. The intent is to find those patients who are not truly in an emergency situation, but who require either observation or some other treatment before they are sent home.