We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Mental Health Reimbursements Fail Emergency Departments
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Hospital Administration > Mental Health Reimbursements Fail Emergency Departments
Hospital AdministrationMental Health

Mental Health Reimbursements Fail Emergency Departments

Mental health reimbursements often fail to cover psychiatric boarding costs, leaving emergency departments to absorb prolonged crisis care.

Aaron Casselman
Aaron Casselman
Share
9 Min Read
Mental Health Reimbursements Fail Emergency Departments -- AI-generated illustration
AI-generated image (OpenAI: gpt-image-1)
SHARE

Emergency Rooms as the First Line of Mental Health Care

Contents
  • Why Psychiatric Boarding Is Hard on Patients and Emergency Departments
  • Why Mental Health Reimbursement Falls Short
  • Can Telepsychiatry Reduce Emergency Psychiatry Delays?
  • Frequently Asked Questions
    • What is psychiatric boarding?
    • Can an emergency room turn away someone in a mental health crisis?
    • Does telepsychiatry replace an in-person psychiatric unit?

Mental health care gaps have made emergency departments a default entry point for people in crisis, and psychiatric boarding keeps many patients there after the immediate medical evaluation is complete. Patients may arrive by ambulance, with law enforcement, or with family members, and emergency clinicians often provide the first treatment, whether the visit is voluntary or not.

Emergency departments are a safety net for a crisis, not a setting for ongoing treatment. Yet people also turn to the emergency room when outpatient care is unavailable, unaffordable, or unable to see them quickly.

Several forces have increased reliance on emergency rooms for mental health care:

More Read

10 Things Hospital Leadership Need to Know About Social Media and Marketing
Your 2015 Checklist for The Joint Commission (TJC)
Medicaid Should Not Impoverish Doctors and Hospitals
Staying Healthy in Philadelphia’s Hospitals
Politics or Purpose: What’s Driving Your Hospital Marketing?
  1. Fewer inpatient and community mental health resources: Deinstitutionalization aimed to move care into communities, but community services and inpatient capacity did not always grow enough to meet demand. The American Psychiatric Association reports that the United States had more than 500,000 psychiatric beds in 1955, followed by a decades-long decline. When an inpatient bed is needed but unavailable, patients may remain in the emergency department until a placement opens.
  2. Limited outpatient access: Emergency departments must evaluate patients who need emergency screening and stabilization. When outpatient clinics have full caseloads or patients cannot get timely appointments, the emergency room may become the only available option. Primary care clinicians can help identify and manage many mental health conditions, but they may not have the time, specialty support, or crisis resources needed for severe symptoms.
  3. Delayed treatment can make a crisis harder to manage: Untreated symptoms can worsen until a patient reaches the emergency room after a major decline in daily functioning, a substance-related crisis, or contact with the justice system. Waiting until that point can make recovery and safe discharge planning more difficult.

Why Psychiatric Boarding Is Hard on Patients and Emergency Departments

Emergency department clinicians are trained to identify urgent medical problems and stabilize patients, but most are not psychiatric specialists. A psychiatrist, psychiatric mental health nurse practitioner, clinical psychologist, or other behavioral health professional can provide a more focused assessment and treatment plan when mental illness is the main reason for the visit.

The emergency room can also be a difficult place to receive psychiatric care. Bright lights, noise, frequent interruptions, and limited privacy can increase distress for a person with anxiety, psychosis, severe depression, or agitation. After triage, staff may be limited to short-term stabilization while the patient waits for discharge resources, a transfer, or an inpatient bed.

Why Mental Health Reimbursement Falls Short

Mental health reimbursement can add to the pressure on hospitals managing psychiatric boarding. Medicaid payment methods vary by state, and reimbursement may not cover the staff time, security support, medical screening, observation, and care coordination required during a long emergency department stay.

Emergency department evaluation and management codes, including 99281 through 99285, may apply to the initial physician or qualified health professional service when documentation supports the billed level of care. Subsequent hospital or observation care codes, such as 99231 through 99233, may apply in the right setting, but they are not psychiatric boarding codes. Psychiatric diagnostic evaluation code 90791 may be used for an initial psychiatric evaluation without medical services when billing requirements are met.

Medicare and commercial plans often use established fee schedules, while Medicaid rates and payment rules differ across states and managed care plans. A Centers for Medicare & Medicaid Services review found that, in the states examined, Medicaid payment for high-complexity emergency department visits ranged from $108 to $350. Hospitals should review payer contracts, state Medicaid rules, and behavioral health billing requirements rather than assume that an emergency psychiatric visit will be reimbursed like a comparable medical visit.

For patients who do not qualify for public coverage and lack private insurance, hospitals may receive little or no payment. The resulting uncompensated care can be substantial when a patient needs extended observation, repeated reassessments, medication management, and help finding a safe discharge plan. Patients facing this problem may also need to understand what emergency care options exist without insurance.

Can Telepsychiatry Reduce Emergency Psychiatry Delays?

Telepsychiatry can give emergency departments faster access to psychiatric expertise for assessment, triage, treatment recommendations, and disposition planning. Telepsychiatry staffing through a company such as FasPsych can support hospital teams with virtual evaluations, rounding, and on-call coverage from licensed psychiatrists and psychiatric nurse practitioners.

Telepsychiatry uses two-way video to connect a behavioral health clinician with a patient, emergency department team, or both. Hospitals may use an on-demand model for individual consults or block hours for scheduled coverage. The goal is not to replace bedside emergency care; it is to bring psychiatric expertise into the workflow sooner, while the hospital team continues to monitor the patient’s medical needs and safety.

Evidence on telepsychiatry is promising but should not be oversold. A review of 11 emergency-setting studies found that telepsychiatry reduced waits for psychiatric evaluations, although some studies found longer total emergency department stays. Faster assessment can help, but telepsychiatry cannot solve psychiatric boarding when the real bottleneck is the lack of inpatient beds, crisis services, or outpatient follow-up.

An in-hospital telepsychiatry program can still work in acute settings because emergency clinicians can provide vital signs, medical history, laboratory results, and the hospital formulary before the psychiatric consultation begins. The psychiatrist can then make recommendations to on-site staff or, where permitted and credentialed, participate in the patient’s treatment as part of the hospital team.

A larger telepsychiatry staffing pool may also give hospitals access to clinicians with experience in adolescent psychiatry, addiction psychiatry, or other specialized needs. Hospitals should set clear response-time expectations, credentialing processes, documentation standards, and discharge handoffs so that telepsychiatry improves care rather than becoming another step in an already delayed process.

Frequently Asked Questions

What is psychiatric boarding?

Psychiatric boarding occurs when a patient has been evaluated in an emergency department but remains there while waiting for inpatient psychiatric placement, transfer, or another appropriate level of care. The wait may last hours or longer when community resources are limited.

Can an emergency room turn away someone in a mental health crisis?

Emergency departments must provide an appropriate medical screening examination and stabilizing treatment for an emergency medical condition. A person in immediate danger of self-harm, harm to others, severe confusion, or inability to stay safe should seek emergency help.

Does telepsychiatry replace an in-person psychiatric unit?

No. Telepsychiatry can speed up psychiatric evaluation and support emergency clinicians, but it does not create inpatient capacity or replace local crisis programs, outpatient treatment, and follow-up care.

For hospital leaders, the practical next step is to measure psychiatric boarding hours, time to psychiatric evaluation, disposition delays, and payer recovery together. Psychiatric boarding will not improve through behavioral health billing changes alone; emergency departments also need reliable psychiatric consultation and stronger pathways to care after the crisis has passed.

TAGGED:behavioral health billingemergency psychiatrymental health reimbursementpsychiatric boardingtelepsychiatry
Share This Article
Facebook Copy Link Print
Share
By Aaron Casselman
Aaron Casselman is a medical writer based in central Minnesota, specializing in bioinformatics. With my Master's Degree in bioinformatics, he brings unique insights into topics related to medicine and health.

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

Advances in Diagnostic Tools for Early Detection of Dementia -- AI-generated illustration
Advances in Diagnostic Tools for Early Detection of Dementia
Diagnostics
August 1, 2026
How Virtual Schools Deliver Therapy and Special-Education Support for Children With Disabilities -- AI-generated illustration
How Virtual Schools Deliver Therapy and Special-Education Support for Children With Disabilities
Health News Therapy
July 31, 2026
mri technology
Why Preventive MRI Maintenance Is Essential for Hospitals
Business Hospital Administration
July 24, 2026
senior on computer
Health and Digital Safety Risks Older Adults Should Know
Senior Care
July 24, 2026

You Might also Like

EHR
BusinesseHealthHospital AdministrationMedical Records

The Irony of a Paper TOC Document in an EHR

October 8, 2013

Advance Practice Nurse Led Clinics – Coming to Your Medical Neighborhood Soon?

November 18, 2012

Collecting Small Patient Balances: A/R Best Practices

August 25, 2014

Create Engaging Content For Your Hospital

June 14, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2026 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?