Government

Study finds EDs face financial woes

NEWS IN BRIEF — Posted June 7, 2004

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A new Centers for Disease Control and Prevention study found that heavy caseloads of uninsured and Medicaid patients have put many of the nation's emergency departments at financial risk.

More than one-third of EDs have a high "safety-net burden," meaning that the percentage of visits by Medicaid patients or the percentage of uninsured patients exceeded 30%, or the combined Medicaid and uninsured rates exceeded 40%.

These EDs were generally in areas with high poverty and unemployment, and they treated a higher percentage of children and African-Americans. Hospitals in the South (61.3%) were more likely to have a high burden, while hospitals in the Midwest (16%) were least likely.

The study also found that less than half of hospitals with high safety-net burdens received federal disproportionate share hospital payments intended to target facilities that treat large numbers of low-income patients.

The study's authors said the results suggested that hospitals are struggling to cover the added costs of the Emergency Medical Treatment and Active Labor Act, which requires EDs to evaluate and stabilize all patients regardless of ability to pay.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/06/07/gvbf0607.htm.

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