The Link Jun. 2014 | Page 7

Expert Insight A deeper dive How to crunch data to manage ER utilization and contain health costs E mergency room overutilization is a prevailing problem, and more than 65 percent of ER visits are for nonemergency reasons. These are generally for disease and viruses or symptoms such as headaches, gastroenteritis, sinusitis and influenza. “The cost of an average ER visit ranges from $1,300 to $1,500, but the average urgent care or client visit ranges from $120 to $500,” says Mark Haegele, regional vice president of sales at HealthLink. “If you move those visits from the ER to other care settings, you’re saving roughly $1,000 per visit. And hundreds of visits add up to hundreds of thousands of dollars.” Here’s how employers can turn member information into intelligence to control plan costs. What’s the first step to decreasing ER utilization? Look at your health plan membership data for patterns, then focus on a communication strategy and specific messaging to change behavior. Determine the number of visits your group has in 12 months, comparing that year over year. Even if there’s no increase, there are opportunities for cost containment. Also, see if you have a frequent flier issue. Are people going to the ER three or more times in a year? Determine which days people are going. If there’s a spike on weekends, educate members on how to access other care settings on Saturday or Sunday. Look at where emergency care is taking place. Is it isolated to a particular community, or split across a region? Finally, break visits down by disease, virus and symptom, versus injuries and poisonings. Then set up metrics. If your average number of ER visits has been consistently at X per 1,000, eliminating 30 or 40 percent of visits for disease, virus or symptoms is your target for the following year. How can employers educate and influence health plan members? Develop a multifaceted communication strategy. Create one piece of communication that goes to all members, such as a flier on the proper use of the ER. And reach out to certain groups, such as frequent fliers, differently. Use information about which hospitals members are visiting to generate a directory of urgent cares around the same ZIP code and ensure that members know the number for the health plan’s 24-hour informational nurse line. The more you share specific costs, the better people will respond. Include a grid that shows the cost to the employer and member for different care settings. Communicate nonemergency diseases or symptoms that create overutilization, and put it in plain English. However, be careful. You don’t want to tell people not to go to the ER. It’s about awareness and education. What about raising co-pays? Higher co-pays get people out of the ER, but raising the cost has become abused, and it often gets shifted from the employer to members. Before you start digging into members’ pockets, give them the opportunity to do the right thing. : Watch HealthLink’s video, “Getting care when you need it quickly” to see when to use the ER, at www.healthlink.com/ ERalternatives.asp. The Link • 7