Impact of Medical Provider Consolidation on Workers’ Compensation Payments

By Olesya Fomenko, Bogdan Savych

March 16, 2023 Related Topics: Access to Care, Fee Schedules, Medical Costs, System Overview

Medical markets are increasingly concentrated. This means that patients are more likely to be treated by physicians at sites owned by hospitals and health systems. This raises a policy concern that the increasing concentration of medical providers may lead to higher payments for medical care without corresponding improvements in patient outcomes.

This analysis is the first in a line of proposed studies examining how the growing consolidation of medical providers affects care delivered to workers with injuries. In particular, it showed how payments for care provided by physicians to workers with injuries changed after hospitals and health systems acquired physician practices.

Impact of Medical Provider Consolidation on Workers’ Compensation Payments. Bogdan Savych and Olesya Fomenko. March 2023. WC-23-19.

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Research Questions:

  • What are the trends in the consolidation of providers treating workers with injuries?
  • What is the impact of the consolidation of medical providers on the payments for workers’ compensation care? 

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