Health systems own and operate care facilities beyond hospitals. Sites of care are put into three categories: inpatient, outpatient, and at-home. Patients receiving inpatient care experience longer stays and more intensive care, while those in outpatient settings receive brief, specialized care.

Inpatient sites of care include hospitals, post-acute care facilities, and skilled nursing facilities. Outpatient care sites include Ambulatory Surgery Centers, imaging centers, urgent care centers, and physician’s offices. At-home/virtual care can range in intensity and sometimes mirrors inpatient admission through remote monitoring.

Health systems are investing in expanding outpatient facilities. The volume of care provided at outpatient facilities is growing, a signifier that patients are sidestepping traditional inpatient care for faster, more convenient options. This ongoing shift was accelerated by the pandemic, which also promoted a shift to virtual and home care models, like Hospital at Home.

The shift to optimizing outpatient care has created challenges for health systems, especially in the payer space. Industry members can assist LHS by providing new services/products that are built for the outpatient, virtual, or home care environment.