BWC announces intermediate plan to reduce hospital costs Print E-mail
Tuesday, Aug. 2, 2005

Proposal could save up to $50 million over 15 months while long-term analysis is done

(COLUMBUS) – The Ohio Bureau of Workers’ Compensation (BWC) announced that it’s planning to roll back its hospital fee schedules beginning Oct. 1, 2005, with a balanced proposal that will save as much as $50 million over 15 months without jeopardizing access for injured workers.

BWC proposed reducing inpatient hospital fees from 70 percent of charges to 55 percent. In addition, outpatient charges would drop from 60 percent of charges to 50 percent. The bureau made these recommendations to key stakeholders from the business, labor and medical communities.

Last month, Governor Bob Taft asked BWC to recommend options and strategies to combat and address rising hospital costs.

"BWC has crafted a sound short- and long-term plan to address rising hospital costs," Governor Taft said. "I'm confident this proposed solution is fair and will ensure the working men and women of Ohio will continue to receive topnotch care at their local hospitals."

Tina Kielmeyer, the bureau’s interim Administrator/CEO, stressed that the proposed rollbacks are an intermediate solution while BWC works to identify a long-term solution.

“The proposed reduction is a significant step in the right direction because it provides immediate savings to Ohio’s business community without impacting the quality of care provided to injured workers,” Kielmeyer said. “However, more analysis is necessary to determine an appropriate long-term solution that rewards hospitals for achieving quality outcomes and greater efficiencies.”

The bureau will issue an RFP for a health-care consultant who will explore payment methodologies for hospital expenses and other medical costs, and recommend a permanent fee schedule. BWC will continue to work with the consultant and its stakeholders to implement any proposed solutions.

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Media contact: Jeremy Jackson, Ohio Bureau of Workers’ Compensation, at (614) 752-7558, or Emily Hicks, (614) 728-6197.