Workers Comp Medical Networks – Three Conflicting Studies
Most Workers Comp networks generate large claim payment reductions according to two studies. Another study indicates no savings from these same Workers Comp medical networks.
One of my Six Keys To Saving On Workers Comp Costs involves medical control. Since the late 1980’s I have tracked three variables which save on WC payouts. One of the Six Keys is medical control or the use of medical networks created by the employer.
The others are ASAP First Reports and Return to Work programs.
In the 1990’s, I decided to see if my three financial keys affected the files as I had anticipated from the beginning. I performed two studies on two very different groups of governmental WC claim files. My theory on the financial keys sustained my theory all throughout the two sets of files.
Medical control by the employer reduced costs by 75%. Each employer we have assisted in cutting workers comp costs saved premium or budget dollars when using medical control to direct their employees to certain physicians. We stress to each client to have a medical network in place and not just have the company Doctor in place.
Study after study has shown that employees use the physicians that the employer recommends for initial and subsequent treatment for their work related injuries regardless of whether the employee or the employer has the medical treatment control.
Therefore my studies and experience say that medical control and medical networks save big workers comp money. Additionally, the network or medical control provides good conservative care for injured employees. The win-win-win situation creates a great bond between employer and employee.
NCCI Recent Press Release
NCCI, the largest rating bureau for Workers Comp released a study at their Annual State of The Line conference last week. Their study on Workers Comp medical networks indicated much premiums are saved by using medical networks.
WCRI Recent Study Release
WCRI (Workers Comp Research Institute) recently released a study that seems to contradict my findings along with NCCI. WCRI and my findings have always agreed right down the line. In fact most of the time, NCCI, WCRI, and I agreed on almost any aspect of Workers Comp.
For further reading, the links below will take you to each study’s summary. Unfortunately, my study was informal. I do not keep all the data nor did I publish the study as it was a very ad-hoc analysis.
WCRI graciously supplied me with a copy of their study. The summary/abstract is here.
The recent NCCI study has not been released yet. It should be out shortly. I will link to it when it appears on the NCCI website.
I try to write short articles so I will not comment on the NCCI or WCRI Studies yet. I will comment on workers comp medical networks this week.
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