Upfront ED Fees Reduce Bad Debt, Raise Questions

Tags: bad debt | emergency department | emergency room | ER fee | hospital bad debt | uninsured

Roughly half of hospitals across the country now charge patients an upfront fee to go through the emergency department, and although it is reducing hospital bad debt, healthcare advocates argue the practice could be harmful to patients, according to a Washington Post article.

Nashville, Tenn.-based Hospital Corporation of America is one hospital company that has implemented the ED pay policy. Last year, roughly 80,000 ED patients at HCA hospitals left the ED without treatment because they did not want to pay the $150 upfront charge, according to the report. After screenings, it was determined they did not have a "true" emergency.

Sign up for our FREE Hospital CFO E-Weekly for more coverage like this sent to your inbox!

HCA spokesman Ed Fishbough said in the report that the policy helps reduce large crowds in the ED, and other hospitals said the ED charges offset rising bad debt from the influx of uninsured and underinsured patients.

Patient advocates and ED physician groups, such as the American College of Emergency Physicians, argued the policy puts a financial barrier for underprivileged patients to access care and could cause sick people to skip treatment altogether. The U.S. Centers for Disease Control and Prevention indicate roughly 8 percent of ED visits are for non-emergencies, while a 2010 Health Affairs article cited that number was 27 percent.

Related Articles on Hospital Bad Debt:

The 2012 Payroll Tax-SGR Bill: What It Means for Hospitals

Moody's: 4 Reasons 2012 Will Be Financially Challenging for Non-Profit Hospitals

CMS Defines "Uninsured" for Medicaid Disproportionate Share Hospital Payments

© Copyright ASC COMMUNICATIONS 2012. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.