Abstract: The present invention provides a method to stratify patient-cases based on acuity for patient care performed outside of the hospital setting. Using medical code combinations, diagnostic code information, and patient demographic data, the method sorts and ranks patient cases to determine the level of acuity and predicts whether a hospital admission or hospital observation is prevented. The invention presents a program that uses patient-case information recorded by care-givers and accumulated over the course of an observation period. The method analyzes patient-case data and categorizes the observed patient-cases. Once categorized, the extent of successful emergency room diversion can be assessed. In addition to showing the number of patient-cases diverted from the emergency room, using market data comparisons, cost savings reports can be generated quantifying the total estimated savings over a reporting period based on prevented hospital admissions and observations.