Twenty-three hour recovery: observation versus hospitalization.

In the wake of the rapidly changing health care delivery environment, it is becoming essential to health care organizations that unique, innovative methods of managing resources be implemented. Further, such developments must be achieved within the confines of those requirements and revisions occurring within the reimbursement structures of Medicare and Medicaid as well as other third-party payors in keeping with the delivery of quality patient care. The evaluation of patients in an outpatient environment for a period of time before a final decision regarding disposition is made creates the "observation concept." This article discusses the significance of 23-hour observation units for ambulatory surgery patients.