{"id":15640,"date":"2018-04-17T09:00:29","date_gmt":"2018-04-17T09:00:29","guid":{"rendered":"http:\/\/associatednews.us\/content\/2018\/04\/17\/medicare-advisers-recommend-payment-cuts-to-many-free-standing-ers\/"},"modified":"2018-04-17T09:00:29","modified_gmt":"2018-04-17T09:00:29","slug":"medicare-advisers-recommend-payment-cuts-to-many-free-standing-ers","status":"publish","type":"post","link":"https:\/\/associatednews.us\/content\/medicare-advisers-recommend-payment-cuts-to-many-free-standing-ers\/","title":{"rendered":"Medicare Advisers Recommend Payment Cuts To Many Free-Standing ERs"},"content":{"rendered":"<p><span style=\"font-style:italic;font-size:16px\">By  <a class=\"colorbox\" href=\"https:\/\/www.npr.org\/sections\/health-shots\/2018\/04\/17\/602916623\/medicare-advisers-recommend-payment-cuts-to-many-free-standing-ers?utm_medium=RSS&amp;utm_campaign=healthcare\">Michelle Andrews<\/a><\/span>  <\/p>\n<div class=\"ftpimagefix\" style=\"float:left\"><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.npr.org\/sections\/health-shots\/2018\/04\/17\/602916623\/medicare-advisers-recommend-payment-cuts-to-many-free-standing-ers?utm_medium=RSS&amp;utm_campaign=healthcare\"><img decoding=\"async\" width=\"150\" src=\"https:\/\/media.npr.org\/assets\/img\/2018\/04\/16\/emergency-01-07f42eeea4024352cb3f50206a4a448df9ba1d24-s1100-c15.jpg\" alt><\/p>\n<div><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2018\/04\/16\/emergency-01-07f42eeea4024352cb3f50206a4a448df9ba1d24-s1200.jpg\"><\/a><\/div>\n<div>\n<div>\n<div><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2018\/04\/16\/emergency-01-07f42eeea4024352cb3f50206a4a448df9ba1d24-s1200.jpg\">Enlarge this image<\/a><\/div>\n<\/div>\n<div>\n<div>\n<div>\n<p>\n                Free-standing ERs tend to have lower standby costs than hospital-based facilities that have to be ready to treat dire injuries. But the free-standing ERs typically receive the same Medicare rate for emergency services.<\/p>\n<p>                <b><\/p>\n<p>                    sshepard\/Getty Images<\/p>\n<p>                <\/b><b><b>hide caption<\/b><\/b><\/p>\n<\/div>\n<p><b><b>toggle caption<\/b><\/b><\/div>\n<p><span><\/p>\n<p>        sshepard\/Getty Images<\/p>\n<p>    <\/span><\/div>\n<\/div>\n<p>The woman arrived at the emergency department gasping for air, her severe emphysema causing such shortness of breath that the physician who examined her immediately put her on a ventilator to help her breathe.<\/p>\n<p>The patient lived across the street from that suburban Denver ER. The facility wasn&#8217;t physically located at a hospital, says Dr. David Friedenson, the physician who took care of her that day. But it was affiliated with a hospital several miles away \u2014 North Suburban Medical Center.<\/p>\n<p>Free-standing emergency departments have been cropping up across the U.S. in recent years and now number more than 500, according to the <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/www.medpac.gov\/\">Medicare Payment Advisory Commission<\/a>, an agency that<strong><\/strong>reports to Congress.<\/p>\n<p><!-- END ID=\"RES603026805\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>Often touted as more convenient, less crowded alternatives to hospitals, these ERs often attract suburban walk-in patients with good insurance whose medical problems are less acute than those who visit an emergency room that&#8217;s inside a hospital.<\/p>\n<p>If a recent <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/www.medpac.gov\/docs\/default-source\/default-document-library\/april18_ed_presentation_public.pdf\">MedPAC proposal<\/a> is adopted, however, some providers predict that the free-standing facilities could become scarcer.<\/p>\n<p>Propelling the effort are concerns that MedPAC&#8217;s payment for services at these places is higher than it should be, since the patients who visit them are sometimes not as severely injured or ill as those at hospital-based ERs.<\/p>\n<p>The proposal would reduce Medicare payment rates by 30 percent for some services at hospital-affiliated, free-standing emergency departments that are located within 6 miles of an emergency room within a hospital.<\/p>\n<p>&#8220;There has been a growth in free-standing emergency departments in urban areas that does not seem to be addressing any particular access need for emergency care,&#8221; says <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/www.medpac.gov\/-about-medpac-\/commission-staff\">James Mathews<\/a>, executive director of MedPAC. The convenience of a neighborhood ER may even induce demand, he says, calling it an &#8220;if you build it, they will come&#8221; effect.<\/p>\n<aside>\n<div><\/div>\n<\/aside>\n<p>Emergency care is more expensive than a visit to a primary care doctor or urgent care center, in part because ERs have to be on standby 24\/7, with expensive equipment and personnel ready to handle serious car accidents, gunshot wounds and other trauma cases.<\/p>\n<p><!-- END ID=\"RES603027085\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>Even though free-standing ERs have lower standby costs than hospital-based facilities, they typically receive the same Medicare rate for emergency services.<\/p>\n<p>The Medicare <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/khn.org\/news\/fees\/\">facility fee payments<\/a>, which include some ancillary lab and imaging services, but not reimbursement to physicians, are designed to help defray hospitals&#8217; overhead costs.<\/p>\n<p>The proposal would affect only payments for Medicare beneficiaries. But private insurers often consider Medicare payment policies when setting their rules.<\/p>\n<p>According to a MedPAC analysis of five markets \u2014 Charlotte, N.C., Cincinnati, Dallas, Denver and Jacksonville, Fla. \u2014 75 percent of the free-standing facilities were located within 6 miles of a hospital that has an ER. The average drive time to the nearest hospital was 10 minutes.<\/p>\n<p>Overall, the number of outpatient ER visits by Medicare beneficiaries increased 13.6 percent per capita from 2010 to 2015, compared with a 3.5 percent growth in physician visits, according to MedPAC. (The reported data doesn&#8217;t distinguish between conventional and free-standing emergency facility visits.)<\/p>\n<p>&#8220;I think [the MedPAC proposal] is a move in the right direction,&#8221; says <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/profiles.ucsf.edu\/renee.hsia\">Dr. Renee Hsia<\/a>, a professor of emergency medicine and health policy at the University of California, San Francisco, who <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/www.annemergmed.com\/article\/S0196-0644(17)31567-6\/fulltext\">has written about free-standing emergency departments<\/a>.<\/p>\n<p>&#8220;We have to understand there are limited resources, and the fixed costs for stand-alone EDs are lower,&#8221; Hsia says.<\/p>\n<p>But hospital representatives say the proposal could cause some free-standing ERs to close their doors.<\/p>\n<p>&#8220;We are deeply concerned that MedPAC&#8217;s recommendation has the potential to reduce patient access to care, particularly in vulnerable communities, following a year in which hospital EDs responded to record-setting natural disasters and flu infections,&#8221; says Joanna Hiatt Kim, vice president for payment policy at the American Hospital Association.<\/p>\n<p><!-- END ID=\"RES603026970\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>Independent free-standing emergency departments \u2014 those not affiliated with a hospital \u2014 would not be affected by the MedPAC proposal. Those facilities, which make up about a third of all free-standing emergency facilities, aren&#8217;t clinically integrated with a hospital and can&#8217;t participate in the Medicare program.<\/p>\n<p>The MedPAC proposal will be included in the group&#8217;s report to Congress in June.<\/p>\n<p>Proponents of stand-alone emergency facilities say they often provide lifesaving care, even without a clientele of acute trauma patients.<\/p>\n<p>Friedenson says, for example, that being able to avoid the 15- to 20-minute drive to the main hospital made a critical difference for his emphysema patient.<\/p>\n<p>&#8220;By stopping at our emergency department, I truly think her life was saved,&#8221; he says.<\/p>\n<p><em>Kaiser Health News is an editorially independent news service that is part of the nonpartisan Henry J. Kaiser Family Foundation. Michelle Andrews is on Twitter <\/em><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/twitter.com\/mandrews110\">@mandrews110<\/a>.<\/p>\n<p><strong><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/\">Let&#8217;s block ads!<\/a><\/strong> <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\">(Why?)<\/a><\/p>\n<p>Source:: <a href=\"https:\/\/www.npr.org\/sections\/health-shots\/2018\/04\/17\/602916623\/medicare-advisers-recommend-payment-cuts-to-many-free-standing-ers?utm_medium=RSS&amp;utm_campaign=healthcare\" class=\"colorbox\" title=\"Medicare Advisers Recommend Payment Cuts To Many Free-Standing ERs\" rel=\"nofollow\">https:\/\/www.npr.org\/sections\/health-shots\/2018\/04\/17\/602916623\/medicare-advisers-recommend-payment-cuts-to-many-free-standing-ers?utm_medium=RSS&amp;utm_campaign=healthcare<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"ftpimagefix\" style=\"float:left\"><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/www.npr.org\/sections\/health-shots\/2018\/04\/17\/602916623\/medicare-advisers-recommend-payment-cuts-to-many-free-standing-ers?utm_medium=RSS&amp;utm_campaign=healthcare\"><img decoding=\"async\" width=\"150\" src=\"https:\/\/media.npr.org\/assets\/img\/2018\/04\/16\/emergency-01-07f42eeea4024352cb3f50206a4a448df9ba1d24-s1100-c15.jpg\" alt><\/p>\n<div><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2018\/04\/16\/emergency-01-07f42eeea4024352cb3f50206a4a448df9ba1d24-s1200.jpg\"><\/a><\/div>\n<div>\n<div>\n<div><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2018\/04\/16\/emergency-01-07f42eeea4024352cb3f50206a4a448df9ba1d24-s1200.jpg\">Enlarge this image<\/a><\/div>\n<\/div>\n<div>\n<div>\n<div>\n<p>\n                Free-standing ERs tend to have lower standby costs than hospital-based facilities that have to be ready to treat dire injuries. But the free-standing ERs typically receive the same Medicare rate for emergency services.<\/p>\n<p>                <b><\/p>\n<p>                    sshepard\/Getty Images<\/p>\n<p>                <\/b><b><b>hide caption<\/b><\/b><\/p>\n<\/div>\n<p><b><b>toggle caption<\/b><\/b><\/div>\n<p><span><\/p>\n<p>        sshepard\/Getty Images<\/p>\n<p>    <\/span><\/div>\n<\/div>\n<p>The woman arrived at the emergency department gasping for air, her severe emphysema causing such shortness of breath that the physician who examined her immediately put her on a ventilator to help her breathe.<\/p>\n<p>The patient lived across the street from that suburban Denver ER. The facility wasn&#8217;t physically located at a hospital, says Dr. David Friedenson, the physician who took care of her that day. But it was affiliated with a hospital several miles away \u2014 North Suburban Medical Center.<\/p>\n<p>Free-standing emergency departments have been cropping up across the U.S. in recent years and now number more than 500, according to the <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/www.medpac.gov\/\">Medicare Payment Advisory Commission<\/a>, an agency that<strong><\/strong>reports to Congress.<\/p>\n<p><!-- END ID=\"RES603026805\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>Often touted as more convenient, less crowded alternatives to hospitals, these ERs often attract suburban walk-in patients with good insurance whose medical problems are less acute than those who visit an emergency room that&#8217;s inside a hospital.<\/p>\n<p>If a recent <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/www.medpac.gov\/docs\/default-source\/default-document-library\/april18_ed_presentation_public.pdf\">MedPAC proposal<\/a> is adopted, however, some providers predict that the free-standing facilities could become scarcer.<\/p>\n<p>Propelling the effort are concerns that MedPAC&#8217;s payment for services at these places is higher than it should be, since the patients who visit them are sometimes not as severely injured or ill as those at hospital-based ERs.<\/p>\n<p>The proposal would reduce Medicare payment rates by 30 percent for some services at hospital-affiliated, free-standing emergency departments that are located within 6 miles of an emergency room within a hospital.<\/p>\n<p>&#8220;There has been a growth in free-standing emergency departments in urban areas that does not seem to be addressing any particular access need for emergency care,&#8221; says <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/www.medpac.gov\/-about-medpac-\/commission-staff\">James Mathews<\/a>, executive director of MedPAC. The convenience of a neighborhood ER may even induce demand, he says, calling it an &#8220;if you build it, they will come&#8221; effect.<\/p>\n<aside>\n<div><\/div>\n<\/aside>\n<p>Emergency care is more expensive than a visit to a primary care doctor or urgent care center, in part because ERs have to be on standby 24\/7, with expensive equipment and personnel ready to handle serious car accidents, gunshot wounds and other trauma cases.<\/p>\n<p><!-- END ID=\"RES603027085\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>Even though free-standing ERs have lower standby costs than hospital-based facilities, they typically receive the same Medicare rate for emergency services.<\/p>\n<p>The Medicare <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/khn.org\/news\/fees\/\">facility fee payments<\/a>, which include some ancillary lab and imaging services, but not reimbursement to physicians, are designed to help defray hospitals&#8217; overhead costs.<\/p>\n<p>The proposal would affect only payments for Medicare beneficiaries. But private insurers often consider Medicare payment policies when setting their rules.<\/p>\n<p>According to a MedPAC analysis of five markets \u2014 Charlotte, N.C., Cincinnati, Dallas, Denver and Jacksonville, Fla. \u2014 75 percent of the free-standing facilities were located within 6 miles of a hospital that has an ER. The average drive time to the nearest hospital was 10 minutes.<\/p>\n<p>Overall, the number of outpatient ER visits by Medicare beneficiaries increased 13.6 percent per capita from 2010 to 2015, compared with a 3.5 percent growth in physician visits, according to MedPAC. (The reported data doesn&#8217;t distinguish between conventional and free-standing emergency facility visits.)<\/p>\n<p>&#8220;I think [the MedPAC proposal] is a move in the right direction,&#8221; says <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/profiles.ucsf.edu\/renee.hsia\">Dr. Renee Hsia<\/a>, a professor of emergency medicine and health policy at the University of California, San Francisco, who <a class=\"colorbox\" rel=\"nofollow\" href=\"http:\/\/www.annemergmed.com\/article\/S0196-0644(17)31567-6\/fulltext\">has written about free-standing emergency departments<\/a>.<\/p>\n<p>&#8220;We have to understand there are limited resources, and the fixed costs for stand-alone EDs are lower,&#8221; Hsia says.<\/p>\n<p>But hospital representatives say the proposal could cause some free-standing ERs to close their doors.<\/p>\n<p>&#8220;We are deeply concerned that MedPAC&#8217;s recommendation has the potential to reduce patient access to care, particularly in vulnerable communities, following a year in which hospital EDs responded to record-setting natural disasters and flu infections,&#8221; says Joanna Hiatt Kim, vice president for payment policy at the American Hospital Association.<\/p>\n<p><!-- END ID=\"RES603026970\" CLASS=\"BUCKETWRAP INTERNALLINK INSETTWOCOLUMN INSET2COL \" --><\/p>\n<p>Independent free-standing emergency departments \u2014 those not affiliated with a hospital \u2014 would not be affected by the MedPAC proposal. Those facilities, which make up about a third of all free-standing emergency facilities, aren&#8217;t clinically integrated with a hospital and can&#8217;t participate in the Medicare program.<\/p>\n<p>The MedPAC proposal will be included in the group&#8217;s report to Congress in June.<\/p>\n<p>Proponents of stand-alone emergency facilities say they often provide lifesaving care, even without a clientele of acute trauma patients.<\/p>\n<p>Friedenson says, for example, that being able to avoid the 15- to 20-minute drive to the main hospital made a critical difference for his emphysema patient.<\/p>\n<p>&#8220;By stopping at our emergency department, I truly think her life was saved,&#8221; he says.<\/p>\n<p><em>Kaiser Health News is an editorially independent news service that is part of the nonpartisan Henry J. Kaiser Family Foundation. Michelle Andrews is on Twitter <\/em><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/twitter.com\/mandrews110\">@mandrews110<\/a>.<\/p>\n<p><strong><a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/\">Let&#8217;s block ads!<\/a><\/strong> <a class=\"colorbox\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\">(Why?)<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"class_list":["post-15640","post","type-post","status-publish","format-standard","hentry","category-health"],"_links":{"self":[{"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/posts\/15640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/comments?post=15640"}],"version-history":[{"count":0,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/posts\/15640\/revisions"}],"wp:attachment":[{"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/media?parent=15640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/categories?post=15640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/associatednews.us\/content\/wp-json\/wp\/v2\/tags?post=15640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}