assessing the cost of preventative measures against the

24
Assessing the cost of preventative measures against the cost of illness and injury Psychological Injury Manager, Injury Management and Workers Compensation Julia Cohen

Upload: others

Post on 22-Apr-2022

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Assessing the cost of preventative measures against the

Assessing the cost of preventative measures against the cost of illness and injury Psychological Injury

Manager, Injury Management and Workers Compensation

Julia Cohen

Page 2: Assessing the cost of preventative measures against the

Agenda

› 1. Key aspects of your company’s culture

› 2. Preventing late Reporting

› 3. University of Sydney story

› 4. Example of prevention – psych claims

› 5. Claims Prevention Database

› 6. Basic Method to Calculate cost (spend) of prevention against premium

payable (ROI)

2

Page 3: Assessing the cost of preventative measures against the

Your company’s culture

› How many potential injuries you have

- This year? / Last year?

› How many of potential injuries converted to lost time illness or claims?

› Your reporting lag.

› How to read your HR / Workers Compensation data?

- What was your total cost of claims last year? / Year before?

- Your LTIFR?

- Where are your biggest injury costs coming from?

› What is the next injury you are worried about?

3

Do you know

Page 4: Assessing the cost of preventative measures against the

Your company’s culture

› We have an easy to use incident

notification system for ALL

employees

› Injuries are reported / managed as

soon as an incident is notified

› Discomfort action

› I get (& understand) my claims data

› Suitable duties plans are created

for all injured employees

› Psych claims are manageable

› Employees have to notify their supervisor in person for an incident process to begin

› Claims reported once medical certificate / claim form received

› Discomfort first aid

› My broker gets my claims data

› Suitable duties plans only if employee fit for less than full hours

› All unfit employees are referred to Rehab

› Psych claim instant Rehab referral

4

Which column describes you?

Page 5: Assessing the cost of preventative measures against the

Workers Comp Risk Management Funding

› I get Risk management Funding

› Develop a prevention plan at the

beginning of the year for how I will

use the funding

- Analyse my hotspots

- Set targets

- Discuss with my insurer

› I don’t get Risk Management

Funds market your policy!

› Get to November and realise that I

have not claimed it all Rush to

find relevant invoices to claim the

money

5

A source of funding?

Page 6: Assessing the cost of preventative measures against the

Do you know how much money you waste?

6

Reporting Lag : Hartford Study

0%

18%

29%

45%

99%

0%

20%

40%

60%

80%

100%

120%

1 - 6 days 8 - 14 days 15 - 28 days > 5 weeks >13 weeks

Impact on cost of claim of reporting lag

Page 7: Assessing the cost of preventative measures against the

Reporting Lag

7

When Day 0 is included

13%

0%

18%

29%

45%

99%

0%

20%

40%

60%

80%

100%

120%

0 days 1 - 6 days 8 - 14 days 15 - 28 days > 5 weeks >13 weeks

Impact on cost of claim of reporting lag (0 days included)

Page 8: Assessing the cost of preventative measures against the

Do you know how much money you waste?

8

Incurring excess | Reporting Lag

61% 56% 55% 67% 64%

70% 72%

0

0.2

0.4

0.6

0.8

1

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12Target

2011/12Actual

KPI 2: Claim Reporting Time lag (0 - 7 Days) Target: 70.40%

This still means that 28% of our claims are incurring excess:

Total claims 2012 = 151

Therefore 58 claims incurred excess.

If that is $1000 per claim = excess impact of $4050 per claim in costs

Faculties paid $58000 of that directly out of their budgets

PLUS $175009 additional premium paid

Prevention strategy for 2013?

Developing a charge-back system and faculty

reporting and communication plan for each late report

Page 9: Assessing the cost of preventative measures against the

The Nitty Gritty

› Knowing your costs allows you to set goals

› University of Sydney story:

› 2011 : Review team structure (within greater HR structure)

9

Identifying ways of reducing cost and increasing staff wellbeing

Page 10: Assessing the cost of preventative measures against the

Identify costs to enhance wellbeing

› Sending all lost time claims to Rehab

› Costing >$3500 per claim

› Set a target to limit that to $<1500 by end of year (from August)

› EOY = $<1200 per claim

› Reduced costs reflected in end year adjustment – dropped from ~$800K to

$80K (90%!)

10

Page 11: Assessing the cost of preventative measures against the

University of Sydney Process : Importance of Triage

› Earlier the better

› No-one owns the case

› We are all responsible for

the issue

› Communicate

› Communicate

› & document

11

When a psych issue hits our radar

Cases

Meetings

Case

Management

Group

OHS

Incident

Notification

System

HR Advisor

Group

Injury Management Group become aware of “hotspot”

Start feedback loop; issue becomes a case to discuss at any of the above fora

Prevention

Training

(Mental

Health &

Ergonomics)

NOTE: use

of Risk

Management

Fee

Document Case

on Injury

Connect

Collect

documetation

already available

Coach HRA and

local manager in

documetation of

issue

Collaborate with

CMG if it is a

health / RTW

case

Maintain email

link to all

documentation

Does not develop into a claim

Saving of $21k ($63k to premium

RPL; $147k traditional method) Notified as a

workplace injury

Page 12: Assessing the cost of preventative measures against the

Monitoring

› Keeping it updated can be arduous

› It is fabulous for reporting purposes

› Can show premium saved by potential injuries that never became claims

12

Claim Prevention Database

Page 13: Assessing the cost of preventative measures against the

Triage

› Ergonomic assessments can save real money

› Excerpt from Annual Report:

› Injury Prevention:

› The University maintained an active injury prevention program focussing

on areas of need; specifically ergonomics, manual handling and

psychological injury prevention. A total of 124 individual ergonomic

assessments were carried out in 2012 saving a potential $2.5m in

workers compensation premium had these progressed to injury.

Manual handling training was delivered to 14 work groups (covering 151

staff members in total). Psychological injury prevention training was

attended by 165 University staff members during 2012 saving another

potential $1.9m in workers compensation premium.

13

How early is too early to know a claim is on the way?

Page 14: Assessing the cost of preventative measures against the

Assessing the costs of making a workers compensation claim against the cost of prevention

› Do you know your most common

- Claim type?

- Cost?

› Do you know your most costly

- Claim type

- Cost per claim?

- And if you do what are you doing about it?

14

Page 15: Assessing the cost of preventative measures against the

Burden of Illness Profile | Early Days

› Research shows that 70% long

term illness absence due to

musculo-skeletal and psychological

illness combined. (Maastricht Cohort Study)

› Therefore aim wellbeing at these

areas

› University Initiatives 2013:

- Walking Challenge

- Move more, sit less

- Mental Health Skills training

15

Page 16: Assessing the cost of preventative measures against the

University of Sydney Claims Profile

16

Injury Categorisation by Mechanism

This chart shows the categorisation of 281 injuries.

Page 17: Assessing the cost of preventative measures against the

Patterns

17

Hitting

Objects

With A

Part Of

Being Hit

By

Moving

Objects

Heat,

Electricit

y And

Other

Chemical

s And

Other

Substanc

Mental

Stress

Vehicle

Incidents

And Other

0 0 0 0 0 0

1 1 0 0 0 1

0 0 0 0 0 2

3 0 0 0 1 1

0 0 0 0 0 0

0 1 0 0 4 3

0 0 0 0 0 0

1 0 0 0 0 2

0 0 0 0 0 0

0 0 0 1 0 0

0 0 0 0 0 0

1 0 0 0 0 0

1 0 0 0 1 1

2 1 0 0 1 0

3 2 0 0 2 3

1 0 0 0 0 0

4 2 0 1 0 1

7 20 1 3 2 4

0 0 0 0 0 1

0 0 0 0 0 3

0 1 0 0 0 0

0 2 0 0 0 0

1 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 1

1 1 0 0 0 0

1 0 0 0 0 1

12 8 2 4 4 2

0 0 0 1 2 0

4 5 2 0 2 1

1 0 0 0 0 0

44 44 5 10 19 27

1

4

3

3

50

6

8

2

17

2

20

44

1

6

1

5

1

3

1

9

4

10

4

14

1

18

1

Total

1

4

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Biological

Factors

0

0

0

0

0

0

0

0

9

1

59

0

0

0

28

2

274

0

1

1

0

10

1

3

0

1

0

5

7

0

1

0

1

0

1

1

3

0

4

1

5

1

2

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0

0

1

0

0

0

0

0

0

0

Sound

And

Pressure

0

0

Body

Stressing

0

0

1

2

0

1

8

2

3

1

6

1

7

0

0

2

0

1

0

1

0

4

1

2

Falls,

Trips And

Slips Of A

Person

1

1

1

4

0

8

1

Sydney Nursing School

University Library

Vice Chancellor's Office

Total

5

0

64

0

0

2

Pharmacy

Procurement Shared Services

Provost & DVC

Sydney College of Arts

Sydney Conservatorium of Music

Sydney Medical School

Human Resources

ICM: Investments

ICT Operations - Core Services

Faculty of Dentistry

Faculty of Engineering &

Information Technologies

Faculty of Health Sciences

Faculty of Law

Faculty of Science

Faculty of Veterinary Science

HR Operations

DVC (International)

DVC (Research)

DVC Strategic Management

Faculty Education & Social Work

Faculty of Agriculture Food &

Natural Resources

Faculty of Arts

Alumni & Events

Business School

CFO Operations

CIS: Ops & Commercial Activities

Development

DVC (Education) & Registrar

Page 18: Assessing the cost of preventative measures against the

So what is it that the data is telling us?

› Mental Stress = 7%of claims by frequency. (23% of costs)

› Slips Trips and Falls = 23%

› Body Stressing = 22%

ARE ALL OF THESE

ARE PREVENTABLE?

18

Page 19: Assessing the cost of preventative measures against the

YES!

19

Page 20: Assessing the cost of preventative measures against the

Once you know your hotspots and costs leakage

› You can set strategies to measure their impact:

› Body stressing Ergonomic

› Slips Trips and Falls Facilities Management Critical Infrastructure

Review

› Psych Injury

- Mental Health education

- leadership/management skill

- Psychological Health and Safety

20

Page 21: Assessing the cost of preventative measures against the

Spending Money on Prevention

› Body Stressing

› Ergonomic intervention

- Physio on staff for intervention in any case where there is not yet an injury but there is pain/discomfort

- $100K

› RTW

- Job Dictionaries

- $10K

TOTAL: $110K

› Psych

› Mental Health Essentials – 2012

- $60K

› Interpersonal Dynamics & Complex Personalities in the workplace – 2013

- $60K

› Psych job dictionary

- $20K

- TOTAL: $140K

21

You need to be able to establish a basic business case STEP 1: Add up the costs by intervention type

Page 22: Assessing the cost of preventative measures against the

Adding up the costs

› TOTAL COSTS

› $110+$140 = $250K

› PREMIUM PAYABLE

› 2011 : $5.7m

› 2012: $1.5m + $1.2m = 2.7m

› DIFFERENCE:

› $3.0m

22

Method : STEP 2 : Compare total costs to Current Injury Liability

Page 23: Assessing the cost of preventative measures against the

Return on Investment

› Over two years spent $250K on prevention

› Over same period paid $3m less

› ROI is expressed as “how much spent returns how much saved”

› For every $1 spent $12 was returned in savings on premium

› Also note: significant cash flow benefits which a more complex calculation

would show too.

23

STEP 3: Compare costs against CHANGE of liabilities

Page 24: Assessing the cost of preventative measures against the

Thank you

› JULIA COHEN | Manager

Injury Management & Workers Compensation Group | Human Resources

› THE UNIVERSITY OF SYDNEY

Level 5, J12- School of Information Technologies Building | The University

of Sydney | NSW | 2006

T +61 2 9351 4175| F +61 2 9351 5458 M: 0401 669 525

E [email protected]

24