As pressure mounts to increase efficiency, improve outcomes, and reduce costs and readmissions, the imperative to provide the right care at the right time in the right place is stronger than ever. While the staggering growth of ED volumes and the increasing complexity of inpatient care create delays and challenge throughput, an answer might be found somewhere in between the ED or outpatient visit and the traditional inpatient admission - The Observation Patient. A new CMS “2-Midnight” guideline that redefines inpatient care and with mounting pressure to reduce readmissions, the observation patient is at the center of many strategies aimed at making healthcare more efficient.