The goal for the extended observation period is to stabilize and treat the patient. Observation care is an active treatment to determine if the patient’s condition is going to require that he or she be admitted as an inpatient or if the condition resolves itself so that the patient may be discharged. Types of orders include appropriate monitoring (including vital sign measurement), intravenous fluids, medications, activity, diagnostic testing (including lab and radiology), and teaching for preparation of discharging the patient. If diagnostic procedures are performed (such as colonoscopy or chemotherapy), the charges and reimbursement will not be reflected within the observation charges, but as part of the procedure. Physician orders must be specific for the period of time that the patient is in the observation category. The future of health care is about providing better, more efficient care, leading to better patient outcomes. Observation care encourages hospitals to be more timely in providing patient care with a realistic reimbursement structure.