Peter Rousmaniere’s piece in Risk and Insurance outlines precisely what needs to be done to reduce unnecessary medical costs in comp.
To date, most ‘managed care’ programs have had little real impact; most just shift costs around and develop phantom savings so sponsors can show what a great job they are doing by cutting reimbursement – oftentimes on bills for services that shouldn’t have been delivered in the first place.
The focus should be on:
– data data data – making sure it is high quality and consistent, and then using that data to develop a deep understanding of cost drivers and how they are evolving.
– managing chronic pain, opioids and addiction to same
– aggressively directing injured workers to excellent providers and paying them whatever it takes to get their attention and cooperation.
Of course, you can always just continue to do what you’re doing today…
Insight, analysis & opinion from Joe Paduda