Financial viability of Emergency Department observation unit billing models
Academic Emergency Medicine Jun 20, 2018
Baugh CW, et al. - Via creating a Monte Carlo simulation by building a model that reflects current clinical practice in the United States, researchers assessed the financial Viability of Emergency Department Observation Unit Billing Models. They modeled annual staffing costs and payments for professional services under two common models (“one-service” and “two-service” model) of care in an EDOU. EDOU staffing costs exceed payments in the one-service model at all levels of patient encounters, making a hospital subsidy necessary to create a financially sustainable practice. Due to EDOU size limitations and the regulatory hurdles that require setting up a separate professional group for each service, professional groups seeking to staff and bill for both emergency and observation services are seldom able to do so. They recommend policymakers and health care leaders to encourage universal adoption of EDOUs by removing restrictions and allowing the two-service model to be the standard billing option.
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