The Client and Its Challenge
A large national retailer needed to develop a business case for its return-to-work (RTW) program. Specifically, the client needed to estimate the cost savings that would result from changes in the management of medical care to assure appropriateness and timeliness of treatment and enhanced disability management by both the client and vendors for prompt return-to-work.

The Risk Consulting Solution
Marsh was retained to help the client determine the value of implementing a company-wide RTW program. Working closely with the client, Marsh developed cost savings estimates for a disability management program through a multi-disciplinary evaluation of current processes.

Marsh consultants completed a managed care impact assessment. Using a sample of workers' compensation claims, the assessment quantified the cost savings opportunity if the client were to reduce claim durations through a more aggressive disability management program and modified duty accommodation.

An economic model was used to estimate the total cost impact of the current program, including direct costs and indirect costs (replacement staffing, diminished quality, and increased supervisory time), and to project the impact of a RTW program on the company as a whole.

Results
Using the two evaluation tools, Marsh developed a business case that documented the magnitude of the workers' compensation lost-time costs and the potential savings. Marsh consultants estimated that the client could save $2 million annually by implementing a RTW program, which focused on both direct and indirect costs, combined with strong clinical management. The client was able to use this information to secure management focus on improving disability-management processes.