Reducing worker's comp costs
By Andrew Barile
Andrew Barile Consulting Corporation
For chief executive officers of workers' compensation insurance companies, very little has been known about how radiology services management companies offer low cost health care imaging solutions for workers' compensation insurance. For one, all of the services companies are private companies funded by private equity firms trained not to reveal details to the public. Just the opposite of a publicly traded company, which is why you need a person with expertise to identify strategic insurance investment opportunities in this space.
From a historical perspective, the fragmented health care services industry, the largest radiology service provider in workers' compensation insurance, One Call Medical, Inc. (nationwide leaders in MRI/CT/EMG excellence) with estimated annual revenues of $230 million had been sold in 2003 for $115 million to Boston private equity firm TA Associates.
It is interesting to note most workers' compensation traditionalists focus on loss control which could help risk managers save on workers' compensation cost. Loss control measures for workers' compensation claims are important as pressure to reduce health care costs mounts, but radiology service providers could further reduce the cost of compensation claims. Improving safety in the workplace and reducing severity of injuries has always improved workers' compensation loss ratios, but what about radiology service providers reducing your compensation claims costs?
The National Council on Compensation Insurance shows significant expenditures for workers' compensation approaching $60 billion per year. The diagnostic imaging (MRI) component alone was $1.3 billion. More emphasis needs to be focused on the medical management aspect of workers' compensation claims resolution.
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