California Indemnity and Sierra Health to offer HCO for workers comp
A health care organization, or HCO, coordinates the health care delivery system for injured workers, including primary provider assignment, emergency and inpatient care, physician consultations, referrals and diagnostic testing. It also provides quality assurance, medical management and return to work assistance.
The two companies expect to phase in the HCO beginning in the Fresno, CA market, in the first 3 months of 2001, extending to other markets in California later in the year. The California Department of Industrial Relations recently certified Sierra Health's HCO.
"An HCO is a valuable system to help employers reduce costs associated with work injuries," said Kathy Marlon, president, California Indemnity. "Employee selection of an HCO can extend the period of employer medical control from the current 30 days, to up to 180 days or more. This is one of the key issues driving increased claims costs in California."
"Coordinating the medical care reduces costs and lost work time without sacrificing quality medical care," Marlon added. "Our partnership with Sierra Health and Life will provide a cost advantage to our employer customers."
California Indemnity is a wholly owned subsidiary of CII Financial Inc., a workers' compensation insurance group that writes policies in 9 states. Sierra Health and Life is a California-domiciled life and health indemnity insurance company currently licensed in 43 states and the District of Columbia. Both CII Financial and Sierra Health and Life are wholly owned subsidiaries of Sierra Health Services, Inc., a Las Vegas-based diversified health care services company.
Edited by Steve Tarnoff
Managing Editor, HRHub.com
Email: Starnoff@vertical.net