The Client and Its Challenge
This national manufacturer acquired several new facilities and faced rising workers’ compensation costs. Growth through acquisition resulted in little or no consistency in workers’ compensation claims procedures across facilities. As a result, the client wanted to review its existing processes, identify best practices to implement across the organization, and, at the same time, build in more responsibility and accountability for the workers’ compensation process at each manufacturing site.

The Risk Consulting Solution
Marsh was retained to identify current practices that should be implemented company-wide as well as highlight existing opportunities for improvement. Marsh consultants used a Managed Care Impact Assessment (MCIA) to define the company’s total cost of managed care. This assessment included a review of claims documentation, interviews with key stakeholders, and an analysis of the company’s existing managed care program. The Marsh consulting team reviewed the company’s telephonic and field case management procedures, intervention costs and timing, claims durations, and final outcomes.

Using the MCIA, Marsh analyzed the injury management process in its entirety and identified gaps in the company’s existing workers’ compensation managed care policies as compared to best practices. The final report focused on processes that should be implemented company-wide as well as gaps between best practices and the client’s current program. Marsh provided specific recommendations on how to address these gaps and target key areas for improvement.

As a follow up to the MCIA, Marsh consultants developed for the client new return-to-work (RTW) program guidelines that would be applicable across the company’s multiple locations. Marsh trained employees on the methodology and implementation strategy of the updated RTW program and provided support as the new procedures were rolled out in all of the client’s facilities. As changes were made to the client’s existing workers’ compensation program, Marsh consultants made sure the client’s Third-Party Administrator (TPA) was kept abreast of each new policy and procedure.

Results
Due to the success of Marsh’s assessment, recommendations, and training, the manufacturing company reduced its incurred workers’ compensation claims by 59 percent in the first 12 months. A combination of better communication between the corporate headquarters and individual sites as well as increased accountability for workers’ compensation claims helped reduce overall company costs. As part of the company’s revamped RTW program, the client further reinforced accountability for the program by rewarding workers’ compensation coordinators at each facility based on performance measurements.