Clinics not bogged down by red tape can ease health cost burdens

http://goo.gl/nuzDN3

Health clinics that can provide primary care for low-income patients may ease the financial burden on both hospitals and insurance companies while improving patient health, researchers have concluded.

A study of hospital admissions suggests that health clinics that avoid costs associated with insurance administration can help hospitals save money by lowering hospital admission rates and emergency room visits, according to Mark Agee, professor of economics, Penn State Altoona.

The researchers estimated that the major hospital in the area saved $201,414 annually in lower emergency room visits and admissions. They also reported that the hospital showed a decrease of 56 admissions per 1000 patients during the three years that the data was collected.