ERs will also treat severe things like this for uninsured folks as well. It is not all about cost, sometimes it is also about people not getting kids the care they need.
Maybe, just maybe, greywar, they're trying to dig themselves out of a hole by not having the mountainous debt that numerous ER visits can and do make for so many. Honestly, though, MOST ER's I've been too would just give the kid painkillers and send him home. I know firsthand. That's why my knee's so messed up. Because it has needed treatment for many years, but when I would go into the ER despite being able to barely walk on it, they would bandage it and send me home with a note for two days off work.
I don't believe in socialized medicine, you know that. But I DO believe that somehow we should be able to come up with a better system, one that gives choices to the working poor that don't involve more than 10 years of bad credit afterwards.