Texas House Committee on Business and Industry
Tuesday, February 15, 2005

My name is Jai Sharma and I am litigation director for CHRISTUS Health, a faith based, not for profit, health care provider whose heritage in Texas goes back to 1866.  I oversee workers’ compensation for our 40 plus hospitals and health care facilities throughout the system.

I am here to testify in support of the network provisions in House Bill 7.

We are very concerned about the current state of our workers’ compensation system in Texas.  We are concerned as an employer and as a health care provider.

High medical claims costs were a driving factor in our hospital system opting out of the state’s workers’ compensation program.

At CHRISTUS, we consistently experienced claims cost increases of about 20 percent every year under the state’s workers’ compensation system.  The high and continuously increasing costs of the state’s broken workers comp system saps the ability of health care providers and employers to fund productive priorities like investing in the latest health care technology.

Last year, CHRISTUS opted out of the state’s workers’ compensation system and developed our own benefit plan to take care of workers who get hurt on the job.

Financially, that decision has saved our system more than   50% percent in claims costs – resulting in savings of several million dollars during our first year as a non-subscriber. 

Further, our surveys show that our workers are more satisfied.

While Texas employers spend more on medical care per case than other states (46 to 135 percent more), Texas injured workers are less satisfied with all elements of their workers’ comp experience – including their recovery of physical health and functioning, their return to work, and their access to care. 

Conversely, injured workers employed by companies that don’t subscribe to the state’s system are generally satisfied with their treatment. 

But not all companies can do what we have done.  The state’s system is their only option.  Therefore, we support reforms to make the state’s workers’ compensation more cost-efficient and medically effective.  Our system must serve the employer and the employee – and cannot continue to post double-digit cost increases.

We support reforms that will allow network-based solutions.  Physician networks are a crucial component of our successful program and of successful group health plans offered by government and large employers. 

We believe it important to:

• Apply group health prompt payment procedures to workers’ compensation networks.
• Place limits on the retrospective review of medical necessity of care.
• Reduce lengthy and bureaucratic dispute resolution process currently part of TWCC that is time-consuming and expensive for providers.

By creating networks of highly qualified, credentialed health care providers, employers can eliminate providers who over treat and potentially abuse the workers’ compensation system and at the same time, direct injured workers to the best occupational medicine providers.

Thank you.