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ED Physicians: Key to Reducing Healthcare Costs?

June 20, 2013
by John DeGaspari
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Emergency departments are becoming an increasingly important source of hospital admissions, according to report

Emergency physicians are key decision makers for nearly half of all hospital admissions, highlighting a critical role they can play in reducing health care costs, according to a new report from the RAND Corporation. The report recommends that hospital administrators, policymakers, payers and federal research agencies recognize the current reality in emergency department operations and the role they play in coordinating care for millions of patients. 

Hospital admissions from the ER increased by 17 percent over seven years, accounting for nearly all the growth in hospital admissions between 2003 and 2009.  Hospital inpatient care is a key driver of health care costs, accounting for 31 percent of the nation's health care expenses.

Hospital admissions grew from 34.7 million to 36.1 million, offset by a 10 percent decline in admissions from primary care physicians and clinical referrals. Nearly all of the increase was from “non-elective” admissions from the emergency department—a rate 3.8 times the rate of population growth. Increased admissions were highest among people ages 65 and older. Self-pay patients were less likely to be admitted to the hospital than patients with health insurance.  The role EDs and emergency physicians play in deciding who to admit to the hospital is critical to hospital cost savings, since the average cost of an inpatient stay ($9,200) is roughly 10 times the average cost of a comprehensive emergency visit ($922), according to the report.

The report also found that four in five people who contacted a primary care physician or other medical provider before seeking emergency care were told to bypass their doctor's office and go directly to the emergency room. The RAND team found evidence that primary care physicians are increasingly relying on ERs to evaluate and, if necessary, hospitalize their sickest and most complex patients.

“One of the most important elements of patient-centered care is deciding when individuals can't be safely managed in community settings,” said Dr. Wes Fields, chair of the Emergency Medicine Action Fund, which sponsored the RAND research. “Emergency physicians are trained to rapidly evaluate a wide array of conditions that are complex or time sensitive, and facilitate observation or admission of the most acutely ill patients. The study also suggests that the biggest challenge facing most EDs is trying to meet the needs of the growing population of Medicare age.”

Lack of access to follow-up care is a top concern that influences the decision of emergency physicians to admit particularly fragile patients to the hospital, rather than take a chance that they will fall through the cracks and suffer harm. “The Rand report highlights the lack of follow-up care for many patients who come to the ER,” said Dr. Alex Rosenau, president-elect of the American College of Emergency Physicians. “Emergency physicians coordinate transitions of care every day in hospitals across the country, filling the gaping holes in our health care system.”

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