Another year, another letter. For those of you who do not know, I start each year with a letter to help coalesce both our ARC Physical Therapy+ family and our partners in the marketplace around some central issues for the coming year. Last year, I focused on three specific topics: the danger and predicted exposure of commoditized networks, inadequacy of providers who only focus on reactive care and the importance of real outcomes in workers’ compensation. In the end, I am proud to say that I was pretty accurate with my predictions.
- Commoditized networks have become unquestionably disdained within the provider community and increasingly concerning, both culturally and financially, to the employers who access them. The days of commoditized networks continue to grow shorter.
- Similarly, our provider community is continuing to embrace the reality that they must both be a cost component (as a provider) as well as a cost avoider (as a consultant). Like the evolution from the networks above, the market will force this issue.
- Actual outcomes did and will continue to rule workers’ compensation. If you don’t believe me, take a look at the private equity and venture capital interests in this very space. Why? Two reasons: First, the HIPAA waiver in workers’ compensation makes the ability to track meaningful data exponentially easier than other segments. Second, because the employer is mandated to provide care and benefits most from an employee that returns to Full Duty Work status and maximized function at MMI. Therefore, quality precipitates value.