Fiscal Cliff May Lead to Higher WC Costs
With the fiscal cliff looming, Joe Paduda accurately points out that on a national basis, Medicare reimbursement rates are more than likely going to be restrained or significantly reduced. As history has shown, where per encounter rates drop, utilization and other methods have been used to increase the amount of income per patient. In this case, Paduda indicates based upon WCRI data that in non-fee schedule states, significant increases are impacting upon workers' compensation payments already. We liken it to a baloon. Where costs remain steady, or increase, for a medical facility, with patient loads steady or increasing, the gross amount of top line income must remain consistent in order for the facility to remain financially viable. When you push on one side of the balloon, the other side tends to stretch out. We expect to see the rate of increases on the medical side of workers' compensation to continue to increase at a rate faster than inflation, with medical making up the majority of the workers' compensation spend. Read Mr. Paduda's blog and get access to the SCRI report....