How ACOs use this

Operations teams use this to evaluate utilization mix. PCP-led vs. ER-driven care patterns surface where care management is — or isn't — bending the cost curve in your ACO.

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Care Setting Substitution — PCP, Outpatient & ER

Analyzing where Medicare beneficiaries receive care and the relationship between primary care access, outpatient utilization, and emergency department reliance across 51 states and 10 years of data.

Key Insights

The ER Never Recovered

ER visits dropped 19.2% during COVID (2020) and remain 11.9% below pre-pandemic levels in 2023. Meanwhile, E&M visits rebounded +2.2% and outpatient visits are flat — suggesting a permanent behavioral shift away from the emergency department.

The Great Site-of-Service Migration

Inpatient's share of Medicare spending fell from 28.5% (2014) to 23.5% (2023), while outpatient grew from 14.1% to 19.1%. This $5B+ national shift means more care is happening in lower-cost settings.

Dual Eligibility Drives ER Use

The strongest predictor of ER visits isn't lack of primary care — it's poverty. States with higher Medicaid-Medicare dual eligible rates have significantly more ER visits (r=0.593). Social determinants outweigh provider supply.

The Spending Paradox

States with lower ER reliance actually spend MORE overall (r=−0.651). Why? Because more primary care access means more total utilization across ALL settings — but with better outcomes and fewer readmissions.

51
States Analyzed
583*
ER Visits per 1,000 (-19% since COVID)
12,773
E&M Visits per 1,000 (Primary Care)
10
Years of Trend Data (2014-2023)

Care Setting Analytics

ER & E&M Visit Trends (2014-2023)
Care Setting Volume Comparison (2023)
COVID Impact by Care Setting
Spending Distribution by Setting (2023)
Spending Mix Shift (2014-2023)
Dual Eligibility % vs ER Visits (r=0.593)
ER Reliance vs Total Spending (Paradox: r=−0.651)
ER Visit Trends by State Quartile (2014-2023)
Regional Care Setting Comparison (2023)
ER Visits vs Hospital Readmissions

State-Level Detail

State Region ER/1000 E&M/1000 OP/1000 FQHC/1000 ER Reliance % Spend/Capita Readmit %

COVID Recovery Scorecard

Care Setting 2019 Baseline 2020 Rate Drop % 2023 Rate Recovery % Status