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Costs of Care in the Emergency Department

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Costs of Care in the Emergency Department

1. Why are prices so high in the emergency departments?

2. Are production costs also high in the emergency departments and why?

3. What is an example of a fixed cost in an emergency department? A variable cost?

4. How might insurers try to reduce emergency department use?

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Solution Summary

The Solution discusses emergency department costs and insurance.

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1. Why are prices so high in the emergency departments? 2. Are production costs also high in the emergency departments and why?

There are many reasons that emergency room departments' charge exorbitantly higher amounts of money than traditional primary care physicians or other healthcare organizations. There are fees charged in these locations that aren't charged in other healthcare services such as the facility fee, which is charged because of the 24 hour operational business framework of these ER's. In addition, a trauma fee is typical for severely hurt patients in any ER as it costs more to organize trauma units to help stabilize patients facing life threatening conditions.

The necessary assembling of a trauma team to deal with the serious injuries that many Emergency Room department patients experience is the reason ...

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Stephen Washington, MS
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  • BS, Sam Houston State University, 1903 University Avenue, Huntsville, Tx 77340
  • MS, Prairie View A&M University
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