A capacity solution for overflowing hospitals | Viewpoint

Emergency departments and inpatient units across America’s hospitals are overcrowded.

Vic Schmerbeck

The U.S. Centers For Disease Control and Prevention reports that over 139 million people visit the emergency department annually, causing longer wait and visit times, and 13.1% are hospital admissions – often leading to more patients than beds. According to the American Medical Association, researchers are projecting the national hospital occupancy to reach an alarming 85% by 2032 for adult beds alone. And, with a current occupancy of around 75%, the potential of a 10% increase in just seven years is extremely concerning.

As Americans age, capacity rises

The capacity issue only grows more complicated as Americans’ life expectancy has been steadily increasing with each decade since 1960. According to the U.S. Census Bureau, by 2040 the average lifespan will be a whopping 83 years.

An older and sicker population has unique acute care needs that require even more emergency department and hospital visits – resulting in more resource intensive days for healthcare staff. In the next 10 years, the nation’s aging population is projected to drive a 13% increase in high-acuity inpatient days, according to Vizient subsidiary Sg2’s recent “Impact of Change” report.

Health systems can’t shoulder this alone

However, The Health Management Academy’s recent “Health Systems Outlook and Priorities” study clearly shows health system leaders are aware of the current and impending capacity strain on their facilities with their top three priorities being: improving access to care, operational efficiency for care delivery and strengthening workforce.

On top of this, health systems and U.S. citizens are navigating major economic uncertainty for the foreseeable future with rising inflation, tariffs and impending Medicare and Medicaid changes. These proposed Medicare and Medicaid changes could have dramatic consequences for patients. Health systems that rely heavily on fixed government revenue streams could also face challenges. According to The Health Management Academy’s “Health Systems Outlook and Priorities” study, 75% of health systems’ revenue comes from Medicare/Medicare Advantage, Medicaid and self-paying patients.

With all these pressure points impacting patients, caregivers and providers, it’s no surprise that nearly half of Americans say they would delay or avoid emergency care due to concerns about long emergency department wait and boarding times. Therefore, a sustainable solution to address these challenges is critical.

Investing in communities and care

Small-format neighborhood hospitals are on the rise and proving to be the innovative solution the healthcare industry needs for sustained longevity.

Through a one-of-a-kind hybrid care model, these freestanding neighborhood hospitals offer a cost-efficient, joint venture partnership model with health systems – allowing them to expand care directly into the communities that need it most. By combining on-site and virtual care specialty teams, treatment for acute needs are accelerated, and inpatient stays and readmission rates are reduced, with a majority of patients being discharged home. This improves both patient outcomes and satisfaction.

This use of cutting-edge technology allows neighborhood hospitals to deliver affordable specialty care services with on-site diagnostics. Meanwhile, access to telehealth specialists lets patients receive the care they need in the communities they live in, in less time and at a lower cost.

Small-format neighborhood hospitals are reshaping scalable and affordable healthcare access and relieving pressure on traditional health systems. These hospitals are fully licensed and offer a broad range of coordinated comprehensive care options, in conjunction with health systems, including around 20 beds for both observation and short-stay use and emergency or triage use.

The emergency departments have diagnostic capabilities with ultrasound, computed tomography (CT), X-ray and laboratory services with board-certified physicians available 365 days a year, seven days a week. Through the 24-hour family access policy and strategic location of these hospitals, patients can receive high-quality care close to home with their support system right by their side. If higher levels of care are needed, the transition process is seamless thanks to health system partners.

Health system partners benefit from both clinical care efficiency and cost efficiency, as well as capacity redistribution, which ultimately frees up beds and healthcare professionals’ time on partner campuses. Physicians and nurses can have highly flexible schedules and receive around-the-clock support from virtual specialty care teams to lighten workloads, increase oversight, reduce the risk of burnout and lower nurse-to-patient ratios. This type of supportive environment for both the healthcare professional and patient ensures that pain is relieved, answers are found, and true compassionate care is given.

We all know we’re at a crossroads in healthcare – because a system at capacity is a system at severe risk. But hospitals do not have to solve this issue on their own. Small-format neighborhood hospitals in partnership with health systems are an effective and inventive solution to extend access, alleviate overflowing capacity issues and provide timely and effective patient-centered care to communities nationwide.

Vic Schmerbeck is CEO of Emerus