Growth in outpatient care – The role of quality and value incentives

Executive summary

CLINICAL innovation, patient preferences, and financial incentives are tilting the balance in favor of outpatient settings for hospital services. Aggregate hospital revenue from outpatient services grew from 30 percent in 1995 to 47 percent in 2016.¹ Some of this change is driven by patient preference and clinical and technological advances such as minimally invasive surgical procedures and new anesthesia techniques that reduce complications and allow patients to return home sooner.

Financial incentives have likely played a role as well. Health plans and government program payment policies support...