FOR IMMEDIATE RELEASE
April 10, 2006
Commission Releases Report on Health Care Organizations
The California Commission on Health and Safety and Workers' Compensation
(CHSWC) has released a Report on Health Care Organizations (HCOs) in Workers'
Compensation. This report was requested by Assembly Member Rick Keene to
address the effectiveness and viability of HCOs and compare this model for
medical-care delivery with Medical Provider Networks (MPNs) and with the
employee-choice model for provision of medical treatment in workers' compensation.
The findings of CHSWC's report include:
- Health Care Organizations (HCOs) have the potential to reduce costs for employers. HCOs also have the potential to improve the quality of medical care and reduce time lost from work for employees.
- The market viability of HCOs is jeopardized by the introduction of MPNs that allow employers longer control over medical costs through Preferred Provider Organization (PPO) containment without the regulatory fees that are currently imposed on HCOs.
In the report, CHSWC recommends legislative changes to make HCOs more competitive and compatible with MPNs so that both options remain open to employers until research and experience can demonstrate the preferred system for providing medical treatment.
CHSWC is charged with overseeing the health and safety and workers' compensation systems in California and recommending administrative or legislative modifications to improve their operation. CHSWC was established to conduct a continuing examination of the workers' compensation system and of the state's activities to prevent industrial injuries and occupational diseases and to examine those programs in other states.
The paper and information about CHSWC are available on the CHSWC web site www.dir.gov/chswc, by contacting CHSWC by writing to 1515 Clay Street, Room 901, Oakland, 94612; by phone at (510) 622-3959: by fax at (510) 622-3265; or by email firstname.lastname@example.org.