Achieved: $16M Annual Revenue Improvement through Observation Patient Optimization

Updated: Mar 18

The DCCS process for determining patient status and reducing LOS has helped our clients achieve up to $16 million annual revenue improvement.



Implementing a proven strategy to address observation management inefficiencies can increase revenues by millions of dollars while freeing up capacity for care of patients with higher-acuity conditions.


DCCS has designed and successfully implemented a multi-disciplinary approach to improving the management of observation patient populations across hospitals of various sizes and geographic locations.

DCCS Approach to Optimize Observation Rates & Improve Revenue:

  1. Create dedicated observation units to achieve synergies in patient care

  2. Implement observation huddles to convert or discharge patients more efficiently

  3. Educate staff on effective observation patient management

  4. Redesign the care management function to serve the patient’s needs in a quality and timely manner

  5. Focus on the ED care management role to improve collaboration between providers and care managers

  6. Strengthen the Physician Advisor program bridging the gap in clinical and financial communication

  7. Educate providers on the impact of documentation of medical necessity inpatient status determination

  8. Measure performance by instituting metrics and reporting visible to all parties

Our Results

The DCCS process for determining patient status and reducing LOS has helped our clients achieve an average $8.2 million revenue improvement.


Our client's observation rates have declined as much as 57%. Observation LOS decrease by an average of 10 hours across our client hospitals creating additional bed capacity and reducing resource utilization.


In the face of Covid-19, the need for sustainable revenue enhancements and cost management strategies has never been greater.

To Identify the Magnitude of your Opportunity:

Contact DCCS Whatever Challenges your health system is facing:

•Financial Advisory • Management Services • Clinical & Operational Advisory • Strategic Advisory & Governance • Hospital Physician Advisors • Surgery Management Improvement • Nursing Advisory Services • Telemedicine Physician Network • Master Facility Planning • Human Resources Advisory • Interim Management • Permanent Search Solutions • Supply Chain Solutions • Audit and Compliance Services • Other

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