New Study Shows Large Variations in Payments for Hospital Outpatient Care to Injured Workers across States and in Comparison with Medicare Reimbursements
Rising hospital costs in the treatment of injured workers receives attention from public policymakers and system stakeholders in many states. To assist in better understanding these costs, the
"This report found that hospital outpatient payments per surgical episode varied significantly across states, ranging from 69 percent below the study-state median in
"We have included a comparison of workers' compensation hospital outpatient payments and
The following are some major findings from the study:
- States with no workers' compensation fee schedules for hospital outpatient reimbursement had higher hospital outpatient payments per episode compared with states with fixed-amount fee schedules--63 to 150 percent higher than the median of the study states with fixed-amount fee schedules. Also, in non-fee schedule states, workers' compensation paid between
$4,262 (or 166 percent) and$8,107 (or 378 percent) more thanMedicare for similar hospital outpatient services. - States with percent-of-charge-based fee regulations had substantially higher hospital outpatient payments per surgical episode than states with fixed-amount fee schedules--32 to 211 percent higher than the median of the study states with fixed-amount fee schedules. Similar to non-fee schedule states, workers' compensation payments in states with percent-of-change based fee regulations for common surgical procedures were at least
$3,792 (or 190 percent) and as much as$8,244 (or 430 percent) higher thanMedicare hospital outpatient rates. - Most states with fixed-amount fee schedules and states with cost-to-charge ratio fee regulations had relatively lower payments per episode among the study states. In particular, for states with fixed-amount fee schedules, the difference between workers' compensation payments and
Medicare rates ranged between negative 27 percent (or -$631 ) and 144 percent (or$2,916 ).
The hospital outpatient payment indices compare payments (per surgical episode) for common outpatient surgeries under workers' compensation from state to state for each study year and the trends within each state from 2005 to 2014. The analysis captures payments for services provided and billed by hospitals, and it excludes professional services billed by nonhospital medical providers (such as physicians, physical therapists, and chiropractors) and transactions for durable medical equipment and pharmaceuticals billed by providers other than hospitals. The analysis also excludes payments made to ambulatory surgery centers.
The 33 states included in this study represent 87 percent of the workers' compensation benefits paid in
To purchase this study, visit http://www.wcrinet.org/studies/public/books/hci_5_book.html.
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Read the full story at http://www.prweb.com/releases/2016/08/prweb13646820.htm


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