A 64-year-old man presents with fever, productive cough and pleuritic chest pain. His observations are: temperature 38.7°C, blood pressure 100/60 mmHg, respiratory rate 28 breaths/min, pulse 110 bpm, oxygen saturation 92% on air, and he is confused. Urea is 9.0 mmol/L. What is the most appropriate disposition based on severity assessment?