Today's sophisticated medical environment, combined with society's penchant for litigation, has created a broad array of perils for risk managers in the health care industry. Risk managers must deal with dilemmas posed by regulatory and technological changes that have vastly altered the medical field.
Hospitals are no longer merely facilities with equipment where autonomous physicians practice; they owe a direct duty of reasonable care to patients. This dramatic transition for hospitals will ensure a sea of change in the character of hospital medical practice and management.
In summary, there are costs to maintaining separate systems to cover both work- and non-work-related injuries and illnesses; there are also significant costs associated with achieving coordination--if not integration--of the two plans. Overall, the financial data do not indicate that the overlap between workers' compensation and health benefits is of such magnitude as to justify integration regardless of cost; however, the data do suggest that judicious exploitation of opportunities to coordinate the two programs, especially in regard to managing health care providers, may generate significant savings.
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