Free-standing ERs focus mostly on privately insured patients in typically wealthy areas of urban and suburban areas, according to the report. Under federal law, ERs must be tied to full hospital systems to bill Medicare or Medicaid.
Costs for utilizing a freestanding ER instead of an urgent care or primary care facility tend to be at least twice as expensive, depending on the care provided. As many as 50 percent of free-standing ER patients could be seen in an urgent or primary care facility at a lower cost, according to the report.
However, something about these emergency rooms appears to be attracting patients consistently enough that independent ER operators like Lewisville, Texas-based First Choice have been able to make successful moves in to new markets.
First Choice, which up until last year only had locations in Texas, opened a new location in Colorado Springs and may be well positioned to continue expanding in that market, according to the report.
