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H E A L T H T R A C K I N G
F R O M T H E F I E L D
W E B E X C L U S I V E
24 March 2004 The Emergency Department:
Rethinking The Safety Net For The Safety Net

The ED is a key element of today’s health care system,
and it needs to be given adequate support to expand beyond its traditional role.


By
Bruce Siegel



ABSTRACT:

America’s emergency departments (EDs) are in crisis. The dwindling numbers of EDs are increasingly overcrowded as they cope with rising demand. In a Health Affairs Web Exclusive, Glenn Melnick and his colleagues find that despite these trends, overall ED capacity is actually increasing in California. While this may appear to make financial sense for some hospitals, it is a costly response that does little to fix the complex problems that drive ED overcrowding. Given a convergence of factors, it may now be time to radically alter and broaden our historical expectations of the role of the ED.


The crisis of overcrowded emergency departments (EDs) has been documented in the popular media as well as several systematic surveys.1 Consumers and administrators alike report long waits to see a health professional, patients forced to occupy a bed in the ED hallway for hours or even days before being admitted, and large numbers of patients simply giving up and leaving the ED before receiving medical attention. A host of factors are blamed for this, including a rising demand for ED services, shortages of hospital nurses and on-call specialist physicians in the ED, reduced inpatient capacity, and an increased willingness of physicians to direct their patients to the ED for faster diagnostics.

The study by Glenn Melnick and colleagues seeks to determine whether, as widely reported, economic pressures are forcing California hospitals to exit the ED market.2 This would be especially alarming given the recent increase in ED visits they document there. The authors analyzed the California ED market and instead find a much more complex picture in which the number of hospitals with EDs may be declining, but overall capacity is actually increasing.

These findings are especially intriguing given the main drivers of ED overcrowding. Several studies and our own work point to high hospital occupancy with shrunken inpatient capacity (especially in critical care) and impaired patient flow as the major determinants of backups in the ED.3 Hospitals are simply unable to promptly move their sickest (and most resource-intensive) patients from the ED to an inpatient bed. Instead, these patients are left as “boarders” in the ED, consuming already scarce staff time and physical space. The response by California hospitals to essentially build more ED capacity thus may not represent the most rational allocation of resources. They might be better served by functionally increasing inpatient capacity through speeding the complex processes by which admitted patients move out of the ED to inpatient units, or simply adding bed capacity where needed. The strategy of a bigger ED may be driven by a desire to be responsive to staff, physicians, and the community, who all want the hospital to “do something” visible to “solve” the problem of the crowded ED. But it may simply result in a larger reservoir behind the bottleneck of moving patients out of the ED to where they need to be.

The economics of ED operations may also not be straightforward. While Melnick and colleagues may be correct in asserting that EDs are essentially profitable for the “average hospital,” we also have to realize that hospitals vary widely in their payer mix. Thus, an ED may indeed be profitable for a hospital serving a well-insured clientele by facilitating paid admissions. But it may be a severe drain for an institution in which half of the patients are uninsured. The authors omitted trauma centers from their analysis; they may well have omitted those institutions most likely to have the poorest revenue base and highest costs. Subsidies like the disproportionate-share hospital (DSH) program may partially compensate for this, but they generally do not come close to reimbursing the full cost of uncompensated care. If the ED were a risk-free, unalloyed financial boon, we probably would not be observing the current scenario in which investor-owned specialty hospitals without EDs are proliferating.4

Much of the increased demand cited by Melnick and colleagues may be a result of the Emergency Medicine Treatment and Active Labor Act (EMTALA) of 1986, which requires hospital EDs to screen all patients and stabilize them if necessary, regardless of their ability to pay. This is a unique mandate; the federal government does not guarantee such expansive access to any other part of the health care system. This has arguably made America’s EDs the ultimate provider of last resort, without any funding specifically to meet this mission. Rising demand for ED services should thus not come as a surprise, and hospitals’ efforts to meet that demand (however imperfect) are to be expected. The capacity increases noted by Melnick and colleagues would then simply reflect this role of the ED as essentially the health care “safety net” in every community.

If this is the case, we will be forced to fundamentally rethink our expectations for the ED. Historically, we have viewed it as a place of episodic care, where serious illness and injury were quickly addressed and, it is hoped, cured, with the patient admitted if necessary. Continuity of care was not considered an issue. It was assumed that after their ED visit, patients would resume the “normal” habit of seeing their doctor. But law and now practice seem to have changed this scenario. Insured as well as uninsured patients increasingly use the ED.5 Often the majority of patient encounters in the ED could have been treated in other settings, such as a clinic or doctor’s office.6

There are many theories as to why this is happening, including physicians directing patients to the ED, consumers’ preferences and convenience, and fewer restrictions by managed care organizations on ED use. However, regardless of the determinants, the trends are toward more Americans’ being dependent on the hospital ED for primary care. Given this, we may now have to redesign the ED so that it has the staff and systems in place to ensure some level of continuity of care and serve as the primary provider of care for the many who now seem to be dependent upon it. This would entail increasing EDs’ ability to provide patient education and case management, clinical information systems to better handle repeat users, and a greater focus on “urgent care centers” and “fast tracks” that some hospitals already operate adjacent to their ED. This acceptance of the expanded role of the ED will not be popular in many quarters. But it may be the most realistic response to what the market is telling us.

The views expressed here are the author’s and do not necessarily reflect those of the Robert Wood Johnson Foundation or the George Washington University.

NOTES

1.U.S. General Accounting Office, Hospital Emergency Departments: Crowded Conditions Vary among Hospitals and Communities, Pub. no. GAO-03-460 (Washington: GAO, 14 March 2003); and American Hospital Association, Emergency Department Overload: A Growing Crisis, April 2002, www.hospitalconnect.com/aha/press_room-info/content/EdoCrisisSlides.pdf (3 February 2004).
2.G.A. Melnick et al., “Emergency Department Capacity and Access in California, 1990–2001: An Economic Analysis,” Health Affairs, 24 March 2004, content.healthaffairs.org/cgi/content/abstract/hlthaff.w4.136 (24 March 2004).
3. A.J. Forster et al., “The Effect of Hospital Occupancy on Emergency Department Length of Stay and Patient Disposition,” Academic Emergency Medicine 10, no. 2 (2003): 127–133; and GAO, Hospital Emergency Departments.
4. “The Shifting Burden of Emergency Care,” New York Times, 3 February 2004.
5. P.J. Cunningham and J.H. May, “Insured Americans Drive Surge in Emergency Department Visits,” Issue Brief no. 70 (Washington: Center for Studying Health System Change, October 2003).
6. J. Billings, N. Parikh, and T. Mijanovich, “Emergency Room Use: The New York Story,” Issue Brief (New York: Commonwealth Fund, November 2000); and unpublished data on ED use at ten hospitals, Urgent Matters Program, George Washington University School of Public Health and Health Services, January 2004.

Bruce Siegel (siegelmd{at}gwu.edu) is a research professor in the Department of Health Policy, George Washington University School of Public Health and Health Services, in Washington, D.C. He directs Urgent Matters, a national program of the Robert Wood Johnson Foundation focused on the health care safety net and emergency departments.

Read the original article by Glenn Melnick et al., and related papers by W. Wesley Fields, Arthur Kellermann, C. Duane Dauner, and a response by Melnick et al.

DOI: 10.1377/hlthaff.W4.146
©2004 Project HOPE–The People-to-People Health Foundation, Inc.