Caroline Beidler, MSW is an author, speaker, and the Managing Editor of Recovery.com. She writes about topics related to addiction, mental health, and trauma recovery, informed by her personal experience and professional expertise.
Dr. Malasri Chaudhery-Malgeri, known as Dr. Mala, is the Chief Clinical Officer at Recovery.com, where she develops impartial and informative resources for people seeking addiction and mental health treatment.
Caroline Beidler, MSW is an author, speaker, and the Managing Editor of Recovery.com. She writes about topics related to addiction, mental health, and trauma recovery, informed by her personal experience and professional expertise.
Dr. Malasri Chaudhery-Malgeri, known as Dr. Mala, is the Chief Clinical Officer at Recovery.com, where she develops impartial and informative resources for people seeking addiction and mental health treatment.
Navigating the healthcare system can be overwhelming, especially when determining what type of care is best for you or a loved one. One of the most common distinctions you’ll encounter is between inpatient and outpatient care. Understanding the differences, benefits, and limitations of each can help you make an informed decision when seeking medical treatment or mental health support.
The main difference between inpatient vs. outpatient care1 lies in the need for an overnight stay. In inpatient treatment, patients are admitted to a hospital facility and remain under continuous medical supervision. This is typically required when a person needs more intensive medical care or mental health treatment.
In contrast, outpatient care involves treatment that does not require an overnight hospital stay. Patients visit a doctor’s office, clinic, or outpatient facility for procedures, therapy sessions, or evaluations and return home the same day.
Individuals and families can choose the best type of care2 for their needs and preferences.
NAMI shares that:
Mental health treatment can be thought of as a continuum, with patients moving up or down in levels of care3 as needed.
Inpatient care4 refers to any treatment or medical procedure that requires a person to be admitted to a hospital or care facility. This type of care is often reserved for serious or complex health conditions that need close monitoring by medical professionals. Patients undergoing major surgery, treatment for a heart attack, or severe mental health disorders typically receive inpatient care. During a hospital stay, the patient has access to round-the-clock medical staff, including nurses, doctors, and specialists, ensuring a high level of care.
Inpatient care is often necessary when a person requires stabilization, intensive care, or specialized interventions that cannot be safely provided on an outpatient basis. Facilities offering inpatient services include hospitals, psychiatric centers, and substance abuse treatment centers.
Examples of inpatient treatment include:
These services take place in inpatient facilities like hospitals, behavioral health centers, or residential treatment programs.
Outpatient care,6 also called ambulatory care,7 involves medical services that do not require a hospital stay. These include checkups, consultations, diagnostic tests such as CT scans, MRIs, x-rays, mammograms, and lab tests, as well as minor surgeries, colonoscopy, and outpatient mental health treatment.
Outpatient services are typically less intensive and more cost-effective than inpatient options. They can be provided in a variety of settings including doctor’s offices, community health clinics, and outpatient programs within larger healthcare systems. Outpatient care is especially beneficial for individuals who have a stable support system at home and don’t require 24/7 medical supervision.
Examples of outpatient services include:
These services help manage health issues without requiring patients to stay in a hospital overnight.
St. George’s University School of Medicine shares that there may be a “gray area” when it comes to determining if inpatient or outpatient care is needed,9 but treatment and other medical providers can help.
“While there’s a clear difference between an inpatient and an outpatient, there is a little bit of gray area as well. Occasionally, physicians will assign a patient observation status while they determine whether hospitalization is required. This period typically lasts for no more than 24 hours.”
Several factors influence whether a patient needs inpatient or outpatient care:
In general, inpatient care is significantly more expensive than outpatient care due to the costs associated with a hospital stay, including meals, facility use, and continuous medical supervision. Outpatient treatment10 is usually more affordable, especially for routine or preventive care. That said, the total cost of either option depends on:
Most health insurance plans provide some level of coverage for both inpatient and outpatient care, but the details can vary. It’s important to:
Many insurance providers categorize care based on medical necessity and type of treatment, so having a clear diagnosis and documented provider recommendation is essential. Some plans offer more generous coverage for preventive health services, like screenings and wellness checkups, which are typically done on an outpatient basis.
Understanding the difference between inpatient and outpatient care is crucial for making the right treatment decisions.
Each offers distinct benefits, and your choice should be guided by the severity of your health condition, the type of care required, and guidance from trusted healthcare providers. There may also be situations or conditions that benefit from an inpatient to outpatient transition.11
Whether you’re facing a medical emergency, managing chronic illness, or navigating mental health challenges, knowing your options can help you choose the right path to recovery.
A: Inpatient care requires a patient to stay overnight in a hospital or treatment facility, often for serious conditions needing close monitoring. Outpatient care involves treatment or services—like consultations, tests, or minor procedures—without an overnight stay.
A: Inpatient settings include hospitals, psychiatric units, residential treatment centers, and rehabilitation facilities where patients are admitted for round-the-clock medical supervision.
A: An outpatient is a patient who receives medical care—such as a checkup, diagnostic imaging, or therapy session—without being admitted to a hospital or staying overnight.
A: While there’s no strict hourly definition, a patient is typically considered inpatient once they are formally admitted to the hospital and stay for at least one night under medical supervision.
A: Outpatient care refers to medical services that don’t require a hospital stay. It includes doctor visits, lab tests, outpatient surgeries, and mental health therapy.
A: Examples include emergency surgery, treatment for heart attacks, psychiatric hospitalization, and inpatient substance use rehab programs.
A: Outpatient mental health care involves therapy, counseling, medication management, or group programs where patients return home after each session.
A: Inpatient mental health care is necessary when a person is in crisis, at risk of harming themselves or others, or needs intensive treatment and supervision not possible at home.
A: It depends on symptom severity, safety risks, support systems, and provider recommendations. Many start with outpatient care and may transition to inpatient if symptoms escalate.
A: Yes. Inpatient surgery requires hospitalization for monitoring and recovery, while outpatient surgery (also called same-day surgery) allows patients to return home post-procedure.
A: Inpatient care is generally more expensive due to hospital stays, staffing, and intensive services. Outpatient care is usually more affordable and cost-effective for routine treatments.
A: Outpatient treatment allows for greater flexibility, lower cost, continued daily life activities, and is ideal for stable conditions not requiring 24/7 monitoring.
A: Key factors include the complexity of the procedure, patient health status, need for anesthesia or monitoring, provider recommendations, and insurance policies.
1. Cotie, L. M., Pakosh, M., & Ghisi, G. L. M. (2024). Inpatient vs. Outpatient: A Systematic Review of Information Needs throughout the Heart Failure Patient Journey. Journal of clinical medicine, 13(4), 1085. https://doi.org/10.3390/jcm13041085
2. Schneeberger, A. R., Werthmueller, S., Barco, S., & Heuss, S. C. (2023). Patients' preference regarding inpatient versus outpatient setting - A systematic review. The International journal of health planning and management, 38(5), 1409–1419. https://doi.org/10.1002/hpm.3669
3. National Alliance on Mental Illness. (n.d.). The value of structured outpatient treatment. NAMI. https://www.nami.org/treatment/the-value-of-structured-outpatient-treatment/
4. National Institute on Drug Abuse. (2014). Principles of adolescent substance use disorder treatment: A research-based guide. National Institutes of Health. https://www.ncbi.nlm.nih.gov/books/NBK144006/
5. Hogue, A., Henderson, C. E., Becker, S. J., & Knight, D. K. (2018). Evidence base on outpatient behavioral treatments for adolescent substance use: Progress in community practice settings. BMC Psychiatry, 18, Article 77. https://doi.org/10.1186/s12888-019-2371-5
6. Definitive Healthcare. (n.d.). Outpatient care. https://www.definitivehc.com/resources/glossary/outpatient-care
7. Institute for Patient- and Family-Centered Care. (n.d.). Defining ambulatory care. https://www.ipfcc.org/bestpractices/ambulatory-care/defining-ambulatory-care.html
8. Tönnies, J., Ayoub-Schreifeldt, M., Schrader, V., Hartmann, M., Wild, B., Friederich, H. C., & Haun, M. W. (2023). From inpatient to outpatient mental health care: Protocol for a randomised feasibility trial of a care transition intervention for patients with depression and anxiety (the AMBITION-trial). PloS one, 18(11), e0291067. https://doi.org/10.1371/journal.pone.0291067
9. St. George’s University. (2022, July 15). Inpatient vs. outpatient: What’s the difference? https://www.sgu.edu/school-of-medicine/blog/inpatient-versus-outpatient/
10. Huskamp, H. A., Busch, A. B., Souza, J., & Uscher-Pines, L. (2022). Treatment of opioid use disorder among commercially insured patients in the context of the COVID-19 pandemic. JAMA Network Open, 5(11), e2240294. https://doi.org/10.1001/jamanetworkopen.2022.40294
11. Tönnies, J., Ayoub-Schreifeldt, M., Schrader, V., Hartmann, M., Wild, B., Friederich, H. C., & Haun, M. W. (2023). From inpatient to outpatient mental health care: Protocol for a randomised feasibility trial of a care transition intervention for patients with depression and anxiety (the AMBITION-trial). PloS one, 18(11), e0291067. https://doi.org/10.1371/journal.pone.0291067
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