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Mar
28

Arkansas is the canary

Facility costs are the fastest growing cost in workers’ comp.

Rural hospitals are in deep financial trouble – many are shutting floors, wings, or are closing entirely.

Medicaid is all that is keeping many rural hospitals afloat – Mercy Hospital’s days are done…And work requirements will cost hospitals billions.

Arkansas has already kicked 18,000 people off Medicaid – mostly because the state’s Medicaid work requirement program is unbelievably poorly run, its leaders don’t know a damn thing about challenges faced by poor people, and no one at the state or federal level is demanding they get their stuff together.

(A federal judge just blocked the state’s work requirement.)

So, what does this mean for work comp payers in Arkansas?

  • 18,000 more Arkansans are now uninsured
  • Rural and urban hospitals are looking for pennies in the couch cushions.
  • Work comp has lots of pennies.

Joe Paduda is the principal of Health Strategy Associates

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A national consulting firm specializing in managed care for workers’ compensation, group health and auto, and health care cost containment. We serve insurers, employers and health care providers.

 

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© Joe Paduda 2019. We encourage links to any material on this page. Fair use excerpts of material written by Joe Paduda may be used with attribution to Joe Paduda, Managed Care Matters.

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