Financial implication of proposed legislation on hospital reimbursement for the injured drunk driver

Abstract

The state of Michigan currently has no-fault automobile insurance with personal injury protection, providing anyone injured in motor vehicle collisions with unlimited medical and rehabilitation benefits and lost wage recovery. A new bill proposal, Michigan House Bill 5588, will eliminate hospital reimbursement for those who are found to be intoxicated at the time of a motor vehicle collision. These medical costs will be passed on to patients, which may result in a large reimbursement deficit for hospitals caring for these patients. This retrospective review examines the costs of caring for all intoxicated drivers who were admitted to a Level 1 trauma center after a motor vehicle collision over a 2-year period. Intoxicated drivers were younger (P = 0.0002), had a lower Glasgow Coma Scale (P = 0.0013), and were more likely to meet Level 1 trauma criteria (P = 0.0002). The sum of total charges for injured drunk drivers totaled $5.2 million.When taking into account fixed and variable costs of care, lost hospital net income would be $3 million (21.9%) over a 3-year span whether House Bill 5588 passes. In conclusion, the passage of House Bill 5588 will lead to a large financial burden for hospitals that treat intoxicated drivers.