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The Often Overlooked Costs of Physical Medicine

According to an extensive study by the National Council of Compensation Insurance (NCCI), workers' compensation medical severity is rising at 3-1/2 times the rate of medical inflation.

By Ruth Estrich | Updated on October 14, 2009

According to an extensive study by the National Council of Compensation Insurance (NCCI), workers’ compensation medical severity is rising at 3-1/2 times the rate of medical inflation. The study also shows that physical therapy accounts for 24 percent of the total increase in severity.

In light of those numbers, it is surprising that claims organizations often overlook the management of physical therapy services to focus instead on pharmacy (accounting for only 12 percent of the increase in severity) or hospital services (accounting for only 14 percent).

One reason for this common oversight is the relatively moderate 19 percent price increase in physical therapy costs, compared to the pharmacy price increase of 42 percent or the hospital services increase of 48 percent.

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