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Consolidating health care systems results in higher comp costs: Study


The vertical integration of care in consolidated medical systems results in higher claim costs and longer recovery times for workers injured on the job, according to a study released Thursday by the Workers’ Compensation Research Institute.

The Cambridge, Massachusetts-based institute examined the impact of consolidated hospital and health system networks, focusing on care provided to workers who suffered a work-related injury between 2012 and 2018. The study covered the main specialties of medical professionals who treat a large share of workers with injuries, including physicians and non-physicians.

Researchers found the integration of care resulted in a 7.3% increase in costs for claims at six months’ maturity, including a 15.2% increase in costs related to the treatment of lower back injuries. At 12 months’ maturity, costs increased 11.4% for all claims and 21.1% for back injury claims.

Also, among the findings were that patient visits with various providers increased 18.9%; evaluations and management services increased 10.5%; and major radiology services increased 14.1%.

At 12 months’ maturity, there was a 10.5% increase in the duration of temporary disability.



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