Most staffing companies learned long ago that sending a workers compensation accident victim to the emergency room is probably the most expensive way to deal with the accident. The expenses generated from having an emergency room treat the employee, are bound to be very expensive– even for minor injuries. As a result, over the last 10-15 years, many staffing companies have wisely developed relationships with managed care providers that are located near their offices– believing that this was the best way to control their workers compensation costs.
Like with so many things in business (especially health care related), these relationships need to be managed carefully. This article explains how managed care companies are often over charging for many of their services, and that Third Party Administrators (TPA) that are supposed to be managing the managed care providers for the staffing companies, are not always doing their job properly.
http://www.businessinsurance.com/article/99999999/NEWS080110/399999535?tags=|331|92
This is another reason why working with a Professional Employer Organization (PEO) can help keep your workers compensation costs as low as possible. The PEO has specially trained staff to manage each accident situation, and make sure that the costs for treatment are reasonable- since the PEO is on the hook for these expenses too.
Please feel free to contact me at davidstaffing@gmail.com to discuss how you can start utilizing a PEO partner to better manage your workers compensation costs. Also visit us at www.StaffingCompSolutions.com to find out about our other staffing support services
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association