Is occupational medicine the right course for you?
Know the market before wading in, experts say
Taking on the occasional workers’ compensation case is one thing. Building a comprehensive occupational health program is a much larger undertaking. "And it may not even be a wise one," advises Jacqueline Barrett, who serves as administrative director of occupational health services in Seattle for a joint venture between Seattle-based Sisters of Providence Health System and HealthSouth in Birmingham, AL.
The all-or-some approach to building a successful product line will depend on several factors about your facility and its location, says consultant Frank Leone, MBA, MPH, president of Ryan Associates, which specializes in occupational health consulting in Santa Barbara, CA.
Here are some suggestions to help you decide:
• Look at your marketplace.
How large is it geographically? Is it densely populated or largely rural? Densely populated areas are usually crowded with providers who are likely to have multiple clinic sites, says Leone. Rural areas may or may not be underserved.
• Evaluate the competition.
Are most clinic programs comprehensive? Or do providers furnish only some services such as drug testing? It makes no sense to copy competitors unless demand is great. But offering more than employers are willing to pay for is similarly foolish, says Kathy Bishop, OTR/L, MPA, an occupational health administrator recently with Urgent Treatment Centers in Lexington, KY.
• Assess the business community.
How well are employers’ needs being met by existing providers? Are they happy with their contracted providers?
"Ask local employers," advises Barrett. Do some research, she adds. State workers’ comp data and the Chamber of Commerce are good resources. The U.S. Department of Labor in Washington, DC, and local public health agencies also can provide information, Barrett adds.
• Inventory the talent pool.
Obviously, physicians who are board certified in occupational medicine will likely make the best practitioners. But what if there’s a shortage of these physicians in your market? And how easily will it be to refer workers’ comp patients to other specialists when necessary?
• Consider joining a provider network.
You may have to join one just to survive, says Leone. The advent of large entities such as hospitals and health systems offering employers wide access, value, and service is a growing trend, Leone adds. But in the process, you may lose your independence, some experts warn.
• Assess your own resources.
Can you stay open 24 hours a day, seven days a week? Do you have multiple sites? Are you located near workplaces, employees’ homes, or in shopping malls? Employers want you to be open long hours and to be located near large populations for convenience, Barrett says.
• Weigh the economics.
Global pricing for a range of packaged services such as complete pre-employment screenings is an industry mainstay. Negotiated volume-based pricing schedules for certain surgical procedures, for example, is another. Can your facility negotiate these rates without losing income or driving up costs?
• Determine your ability to market and promote.
Finally, can you afford to retain a full-time marketing professional and run a dedicated in-house contracting operation?
"Occupational medicine is marketing-driven. You have to be able to service the employer and act as an adviser and consultant," says Bishop.
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