i think carol levine will talk more about this. so what factors are driving these trend? non-clinical factors. medicare payment policy changes. increased scrutiny. audits, denials of short inpatient stays. there are efficiency advantages. it is quicker to triage from the emergency room to observation, thus observation can reduce e.r. crowding and allow fewer ambulance diversions. there is increased reporting. since medicare won't pay for extra, won't pay extra for observation visits lasting more than 48 hours, many hospitals used to truncate their reporting time and observation but more recently hospitals modified their billing systems to report the full duration of long observation visits. diagnosis and case mix we looked at but those changes do not appear likely to account for growth in the use of observation. since readmission penalties were started in 2012, observation is not counted as a an admission or readmission. so these penalties may continue to drive up the future growth of observation. over the effect of readmission penalties is not reflected in our data which