Record Hospital M&A Deals Spell Trouble for Workers’ Comp Payers

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Hospital-system mergers reduce competition, elevating the importance of cost-containment measures for workers’ comp payers.

Eliminating unnecessary emergency-room visits and other known cost containment measures is increasingly critical, with a record number of hospital mergers expected to squeeze workers’ compensation payers.

Health-system mergers set a record during 2017, with 115 announced deals. The trend continues in 2018, NCCI Holdings Inc. reported in a July 2018 Quarterly Economic…

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