California has long indulged in provider networks in order to foster superior care at a reduced price with mindfulness of minimizing disability in order to get workers back to work faster.  Now Washington state in creating a specific provider network for workers' compensation for their entire system, predicts to save 218 million dollars over the next four years.

The state of Washington taxes employers for workers' compensation funds in order to pay for injured workers' medical and indemnity expenses, and recently there had been signs that the system was going bankrupt. 

Reserves were way down at the end of 2010, which showed only 499 million dollars.  The system was tanking according to a state auditor's report, because of less money coming from businesses due to the recession and the drop from returns from investments because of the economic downturn. But also, another issue has been plaguing the system because 8% of all claims accounted for 85% of all compensation costs due to spiraling medical expenses for claims of the severest types which also involved prolonged temporary disability and lifetime pensions.

Senate Bill 5801 also expands access to Washington's Centers for Occupational Health Education. Its goal is to extend access to all injured workers by December of 2015.  The department will also develop electronic methods of tracking evidence-based quality measures and outcomes. These methods are designed to return more injured workers to their jobs quicker and reduce long term disability periods.

"We know we need to help more workers return to good health and back on the job after an injury, as well as reduce costs for our taxpayers and businesses," Governor Chris Gregoire said in a statement.