T he past decade has seen a dramatic change in Canadian health care as the treatment of many patients shifts from the hospital setting to the home or other alternative health care settings (1). Complex advances in technology and significant changes in the funding environment have also precipitated many changes in the functional capacity of our health care system. The portion of the total Canadian health care expenditures that has been allocated to hospitals and other institutions has declined steadily over the past two decades (2,3). This reduction in institutional-based funding reflects the need to develop a system that improves the use of out-ofhospital sites for delivery of health care services and decreases reliance on the specific institutional component of the health care sector. Recent data reveal that Canadian hospital discharge rates have decreased by 14% between 1994 and 1998, and there has been a reduction in the length of stay from 7.4 to 7 days (4). In conjunction with a reduction in the number of hospital beds, there has been a massive shift in the proportion of surgeries that are performed on an outpatient basis. Further developments in the delivery of care include the increased use of telehealth, which allows health care professionals to provide increasingly complex services centralized hospital sites to outlying areas.The shifts in the funding and delivery of health care services have produced an array of new and difficult challenges. First, the shift in patient care has caused an increase in the severity and acuity of illness among patients receiving care in the hospital environment compared with hospitalized patients in previous decades. These shifts have led to critical care beds. Thus, patients who now receive care in the hospital setting may be at an increased risk for a number of adverse outcomes including nosocomial infections, deep vein thrombosis, pulmonary embolism, upper gastrointestinal bleeding, central nervous system complications, decubitis ulcers, sepsis and increased transmission of antimicrobialresistant organisms. The present article briefly reviews important aspects of the restructured hospital environment and how they may contribute to an increased risk for nosocomial infections and the transmission of antimicrobialresistant microbes. In addition, relevant data that support this hypothesis are reviewed. Several factors unique to the current restructured health care setting may contribute to an increased propensity for nosocomial infections and the transmission of antimicrobialresistant pathogens. These factors may be related to the host, the host-microbe interaction, the use of antimicrobials, the host-antimicrobial interaction, the host environment (including the physical plant, general environmental hygiene, the