Partial Hospitalization Services

Updated: 10 May 2026

What Does Partial Hospitalization Services Mean?

Partial hospitalization services are legally approved health treatments for individuals with mental health issues or substance abuse problems, which do not require them to stay in a facility for 24 hours or more.

Insuranceopedia Explains Partial Hospitalization Services

Congress approved partial hospitalization services as a Medicare program in 1988. These services serve as a bridge between outpatient and inpatient treatments. Mental health treatment is one of the more common reasons people use their health benefits, and the cost of partial and inpatient care is part of why insurers pay close attention to mental health statistics when pricing related coverage.

Patients can access these partial services during the day or night, but their stay in the hospital cannot exceed 26 hours. A doctor familiar with the patient’s medical history will determine the length of the stay. A history of substance abuse treatment can also affect what someone pays later for things like life insurance for people with a history of drug use, since underwriters review past treatment records when assessing risk.