Emergency departments risk closing over pay, overcrowding: Rand
Read Article: Modern Healthcare
Article Summary: The article from Rand Corporation highlights critical risks to emergency departments, identifying overcrowding, increased violence towards clinicians, burnout, lack of funding for uncompensated care, and lower reimbursement rates from payers as major threats. Without intervention, the sustainability of emergency departments, which provide essential 24/7 care, could be at risk, potentially leading to closures. These challenges underscore the need for both legislative action and strategic adjustments within healthcare organizations to prevent a healthcare crisis.
The Risk:
Emergency Department Overcrowding: Emergency departments are experiencing overcrowding due to increased patient volume and complex cases, leading to longer wait times and patients being boarded in hallways. This strain is driving up costs and impacting care quality, potentially threatening the financial sustainability and continued operation of emergency departments.
Burnout and Workforce Attrition: Overcrowding, violence, and insufficient pay are causing significant burnout among emergency department workers. With pay not keeping up with inflation, the sector may struggle to attract and retain qualified staff, leading to potential service disruptions and lower care quality.
Uncompensated Care and Financial Sustainability: The EMTALA mandate requires emergency departments to treat uninsured or underinsured patients, creating funding gaps due to inadequate reimbursement from Medicare, Medicaid, and insurance companies. This financial strain could threaten the viability of emergency departments, especially in underserved areas.
Low Reimbursement Rates from Payers: Underpayment and denial of claims by insurers are leading to significant revenue losses for emergency departments. With rising facility fees and reduced reimbursements, this financial strain may lead to service reductions or closures, particularly in vulnerable regions.