Louisiana Senate Takes First Steps to Outlawing New Freestanding EDs

On February 17, the Louisiana Senate voted overwhelmingly to ban most new freestanding EDs (FSEDs).  The move  targets FSEDs not associated with hospitals and comes out of concerns that the freestanding centers are driving rural hospitals out of business and endangering rural access to healthcare.  The bill now moves to the House for further debate.

Medicare officials are also studying reimbursement for the country’s FSEDs that totalled 566 in 2016.  The FSEDs are reportedly proliferating at a rate of approximately 7% annually.  CMS statistics report that the FSEDs have reduced wait times for patients, but have increased the cost by $55 per patient visit.

The FSEDs are frequently operated by for-profit organizations rather than hospitals.  In many states the FSEDs operate outside the scope of the Federal EMTALA law that requires hospital EDs to provide emergency care without regard to means or ability to pay.  Some states, however, have passed laws regulating non-hospital FSEDs consistent with EMTALA requirements to level the playing field.

 

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