New Zealand Medical MRI and CT Scan Costs Skyrocket

As you see, we repeatedly include workers’ compensation issues from other countries, because it’s not only a U.S. issues — occupational injury costs are happening in many countries. New Zealand, Australia, Canada — all facing same issues as U.S. employers.

Accident Compensation Corporation (ACC) to Rein in Cost of Medical Scans

The cost of medical scans (MRI, CT etc.) rose 120% or $97 million in real money in five years, a far greater rise than expected from inflation, claim numbers or any other factor according to ACC Director of Health Purchasing, Gail Kettle.

“Our analysis found not only are we paying for scans not injury related but also the price was too high. There is no doubt scanning is a valuable diagnostic tool, but in addition to the rapid rise in costs, we know not all scans currently being funded by ACC relate directly to a covered injury. Too many are being done, and they’re too expensive. The point is that every dollar that’s spent inappropriately on scanning is a dollar that could have been spent on a genuine ACC need,” she said.

ACC is planning to reintroduce an earlier system of prior approval of some scans. Since prior approval was dropped in 2004, the number of scans carried out has grown by 20% a year. The change to prior approval is planned for after July 2010 and will only address the volume question.

Beginning on December 1, 2009, ACC will progressively lower the price paid to radiologists and other providers of High-Tech Imaging (HTI) scans, such as MRI and CT scans. By August 2010 a 20% price reduction is expected, bringing NZ more into line with the Australian model. (workersxzcompxzkit)

“We talked to HTI providers and obviously they’re not happy about a price cut but we believe the new pricing model more accurately reflects the cost of providing the service. The new pricing model was also validated by Deloitte. Everyone who is entitled to an ACC-funded scan will continue to get one” Kettle said.

Author Robert Elliott,executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.

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