With the implementation of the Patient Protection and Affordable Care Act (PPACA), significant adjustments are coming in the way health care is delivered and paid for. Now is time to address the nation’s EMS approach in light of this changing environment. I’ll share why I think hospital-based EMS makes sense, but I know there will be other opinions. I look forward to reading them!

Current EMS Delivery

There are largely three options for EMS:

  1. Private systems. Units may work from stations or be roving to address their service area’s emergency and non-emergency needs. Private ambulance companies often provide inter-facility, non-emergency, as well as 911 calls.
  2. Fire department-based. These EMS transport systems typically use medic units only for 911 calls that respond from firehouses located strategically throughout the community. Of the 38,000 fire departments in this country, the majority now provide some type of EMS first-response services even if they do not actually transport patients.
  3. Hospital-based. These units may come from the hospital, stations or be roving as determined by call volume and need.

The Changing Field of Healthcare Delivery and Reimbursement

What will force EMS delivery to change the most? Managed care will move from a voluntary effort by organizations to control health care costs to one where these organizations actually become “gatekeepers.” In this new role, organizations will prevent people from making unnecessary 9-1-1 calls and incurring unnecessary costs. The PPACA is legally required. Although nobody truly knows how these changes will affect healthcare, there’s one thing we can be sure of: People will still become acutely ill or injured and our 9-1-1-based EMS systems will still be needed to address such emergencies.

How EMS deals with chronically ill patients who call 9-1-1 will need to change. Typically, these patients have waited too long to address their medical problem. Often they lack health insurance and use the emergency department (ED) as an entry into the healthcare system. For Medicare patients, these needs should be met through accountable care organizations (ACOs), which are just starting to form. With the continued aging of our population, the medicare demographic will grow, making it a larger percentage of EMS work. Expect all EMS systems to be impacted.

medic 1 The main function of an ACO is to monitor and control reimbursements for healthcare providers. ACOs also monitor the quality of the care being provided. The PPACA allowed for the establishment of a Medicare Shared Savings Program (MSSP), which allows for ACOs to contract with Medicare. Under this type of scenario, the ACO needs to be totally responsible for the quality, cost, care, and management of at least 5,000 Medicare recipients. While EMS is only mentioned in a few places in the PPACA, it is clear the intent of the PPACA also includes pre-hospital delivered services.

An ACO can deny or reduce payment if the provider isn’t meeting quality standards. For example, reimbursement can be denied when a patient is readmitted to a hospital within three days for the same problem. Therefore it is in that hospital’s best interest to make certain the patient doesn’t get readmitted. In the past, hospitals may have viewed EMS merely as a means of delivering patients within their capture area, but under the PPACA, they will undoubtedly be more interested in the impact EMS will have on their patient’s overall course of care and recovery.

How does this impact EMS? To avoid readmitted patients and other quality of care issues, hospitals may choose to become the area’s primary EMS provider in order to control all aspects of the patient’s entry into and through the healthcare system. New EMS-related services provided by hospitals may include home visits within the first three days, or if complications arise, transporting the patient to a level of care other than a hospital ED. Hospitals could contract with existing EMS providers for services, but they may want greater control over operations and services delivered.

Potential Advantages of Hospital-based EMS

My own experience with managing a hospital-based service included the ability to obtain additional in-house cross training and educational opportunities, follow up to patient interventions and outcomes, and inclusion in a system that oversaw patients from the 9-1-1 call through discharge. Inter-facility transfer staffing was simple to arrange if an RN or other care provider was needed. Also, hospital staff gained a better appreciation of the skill set pre-hospital staff processed when were were called to assist with in-house emergencies.

With the changes brought on by the PPACA, a real advantage of hospital-based EMS is incorporation into a one-stop shop. When partnering with an ACO for reimbursement, the enhanced documentation of patient outcomes based upon a systematic approach will yield improved quality and efficiency. By having EMS services associated with a hospital billing operation, EMS can benefit from a dedicated staff with specialized training in meeting PPACA and ACO requirements. This could also benefit the public by recovering more of the EMS operations costs as well as provide better data to support the need for EMS services.

Conclusion

There are strong opinions about where EMS services are headed, and we can argue if PPACA will result in a progression for EMS. However, I think we can agree that change is coming. While I was surprised at how few responses I got on how the aging population could impact EMS, I am confident this topic will generate interesting discussion. Your thoughts?