MDIA Announces Workers’ Compensation Costs Containment

January 23, 2004

Woodland Hills, Calif.-based Medical Diagnostic Associates, A Medical Corporation (MDIA), a leading national provider of Network Diagnostic Services, the expansion of its unique, high-quality Second Opinion program, designed to significantly reduce workers’ Ccmpensation costs.

With MDIA’s Second Opinion service, expert staff radiologists complete a review of a previously performed diagnostic imaging examination and issue a detailed report. This second study speeds the treatment process because there is no need to repeat the diagnostic procedure — saving up to 80 percent in costs and resulting in rapid, appropriate treatment with early return to work status.

“MDIA is striving to help contain Workers’ Compensation costs without compromising the quality of care received by patients and the decision-making processes of their physicians,” said Ronald J. Friedman, M.D., MDIA president and chief executive officer.

“The Second Opinion service has been increasing in demand by physicians and insurance providers to obtain an expert opinion without having to repeat a diagnostic study,” said Friedman. “This preserves the quality of care without increasing costs necessitated by repeat examinations.”

Workers’ compensation costs in private industry rose 17.1 percent from January 2002 to June 2003, the highest increase in any component of compensation, according to a report published in October 2003 by the Labor Research Association (LRA), a non-profit research and advocacy organization that provides educational services for trade unions.

“The advanced training, expertise and experience of MDIA physicians assures diagnostic accuracy and appropriate treatment,” added Gail M. Schlesinger, M.D., MDIA executive vice president and chief financial officer.

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