Uber is reducing ambulance usage in major cities, KU economist says

The ambulance usage rate decreased by at least 7 percent in 766 U.S. cities across the country after UberX entered their markets from 2013 through 2015, a new working paper shows.

UberX offers a private ride — similar to a taxi — that you can request through a mobile app.

The working paper co-authored by a University of Kansas economist found that low-risk patients are more likely to opt for an Uber than an expensive ride with paramedics.

“In order to lower health care spending while improving health outcomes, people can use the least-skilled professional who is still qualified,” said David Slusky, assistant professor of economics at KU. “It's the same in the provider space: you don't need a neurosurgeon to diagnose strep throat.”

As not all emergency room patients need medical care during the drive, an Uber can suffice during those times, the release by KU states.

“Many patients don't need something that can break traffic laws and don't need something staffed by paramedics with a bunch of fancy equipment,” Slusky told KU.

Slusky co-authored the study with Leon Moskatel from the department of medicine at Scripps Mercy Hospital in San Diego.

While Slusky said the most-likely explanation for reduced ambulance usage is people using another method of transportation to get to the hospital, he said it is also possible Uber is reducing the need for ambulances because it is reducing the number of crashes or drunken drivers.

But because ambulance trips are costly to patients and their insurance companies, Slusky said people are likely to look for a way to avoid them when possible.

Other than the reduced expenses, the researchers said there is another potential benefit from low-risk patients using an Uber to get to the hospital — reduced wait times for those who need the ambulances to get them to the hospital faster.

“Given that even a reduction of a few minutes can drastically improve survival rates for serious conditions, this could be associated with a substantial welfare improvement,” the researchers said in the paper.

Slusky told KU that it is important to conduct this type of research to uncover the unintended consequences of Uber entering a market.

“We want to find every way possible to bend the medical cost curve,” he said.

This story was originally published December 18, 2017 at 8:25 AM with the headline "Uber is reducing ambulance usage in major cities, KU economist says."