Economic Analysis of Outpatient Treatment Centers Compared to Hospitals A recent phenomenon in health services is the flourishing of outpatient health centers. Particularly vigorous growth has been seen in centers that perform diagnostic tests and simple surgeries and procedures such as colonoscopy. As it stands, outpatient care centers outnumber hospitals in Pennsylvania. Additionally, these centers now perform one in four surgical and diagnostic procedures in the state (Levy 2006). However, the trend applies nationwide, and other states could easily follow suit. Many critics have commented on the negative and positive aspects of this trend. What remains to be determined are the long-term (health and economic) effects of this paradigm shift, in terms of community and economic well-being. Supporters of the movement have pointed out that lower overhead costs for these clinics translate into lower costs for patients. However, critics ask skeptically whether the real benefits are for patients or simply as a mechanism to pad doctors' wallets. When considered as companies in the market, it is clear that these two groups, both serving the health needs of the community, have very different balance sheets and income statements. This transfers to a difference in operational functionality, profitability and cost structure. Furthermore, the disparity in financial motivations visible in the different profit margins worries the community. All of these are important considerations to make when considering the economic implications of this new phenomenon. The most important aspect of this change to analyze is the healthcare aspect: how effective and safe are outpatients... half of the document.. ....fault.aspx?doc_id=89001Levy, Marc (2006). Outpatient centers outperform Pa. hospitals as profitability rises. The Miami Herald. Retrieved November 7, 2006, from http://www.miami.com/mld/miamiherald/business/national/15736742.htm Harvey Jay Cohen, John R. Feussner, Morris Weinberger, Molly Carnes, Frank Hsieh, Philip Lavori. (1996). The New England Journal of Medicine. A controlled study of inpatient and outpatient geriatric assessment and management, 346, 905-912. Retrieved November 8, 2006, from http://content.nejm.org/cgi/content/full/346/12/905John B. Pollard, Ann L. Zboray, Richard I Mazze. The International Society for Anesthesia Research. (1996). Economic benefit attributed to opening a preoperative evaluation clinic for outpatients, 83,407-10. Retrieved November 8, 2006, from http://www.anesthesia-analgesia.org/cgi/reprint/83/2/407.pdf