Reduce Costs with a Return to Work Program, Part 2

Sunday, September 28, 2003 | 0

The first article in this series reviewed the beginning aspects of implementing a successful return to work program to meet the reimbursement requirements an employer may be eligible for under the 2002 changes to the California work comp laws (AB 749). This article finalizes the analysis necessary for determining whether your organization can meet the needs of an RTW program.

Transitional Duty Case Management

1. Risk Management should coordinate the process.
2. Initial contact should be made with the following areas after the transitional duty coordinator has been alerted to a potential candidate:
* Treating physician
* Supervisor/team leader
* Medical dept
* Safety
* Employee Relations/Human Resources
* Medical case Mangers
* LTD adjuster

Program Duration

- No minimum amount of time, but the process must allow for the injured worker to RTW as soon as possible.
- Employees should be assigned to transitional duty for a maximum of 90 calendar days.
- Injured worker should be re-evaluated every 7 - 10 days to determine if the employee's condition is improving.
- Individual modified duty programs should not last longer than 90 total days. If the employee becomes injured a second time, he/she may not exceed 180 days within a given year.

Program Incentives

The following incentives will be utilized to encourage supervisors to cooperate to the fullest extent in program implementation.

- TDP should be part of the supervisor's performance evaluation and bonus based.
- Supervisor recognition by company newsletter and annual luncheon.
- Rebates to departments at the end of the year to reward program users. Rebates should be based on program savings due to early return to work.
- Injured workers' wages paid by Risk Management. Essentially, an extra person to provide labor for the individual dept.

Program Monitoring

Risk Management dept.
1. Should provide monitoring of individual cases as well as the overall program development and savings.
2. Provide statistical analysis reports to upper management.
3. Should coordinate salaries and disability payments to the injured worker.
4. The Transitional Duty Coordinator should report on individual cases during the 90-day period.

Transitional Duty Oversight Committee

A Transitional Duty Oversight Committee should be established to hear appeals. The following members should be included:

- Transitional Duty Coordinator
- Manger or supervisor (as appropriate)
- Shop Steward (for bargaining unit employees)
- Human Resources/ Employee Relations Manager
- W/C Examiner
- LTD Adjuster (if applicable)

MIS Support

There should be a Central Data Base set up, which can be accessed by:

- TDP Coordinator
- Payroll Dept
- LTD Adjuster
- HR
- W/C
- Med Dept.
- TPA

Other Considerations
- ADA -
* Is the injured worker being treated correctly?
- Job descriptions -
* Is the employee working within their restrictions?
- Reasonable accommodations
Are the restrictions appropriate for the injured worker?
- Cost of modifications -
What are the $ associated with the modifications?

Program Budget

1. The program should initially reside in Risk Management dept.
2. The following budget would be necessary for the establishment and implementation of the program.
3. Ongoing budget requests would be based on the volume of cases handled by the program and savings that may be generated.
4. It is anticipated that both W/C and LTD programs would provide some funding based on the cost savings.

- TDP Coordinator (salary & benefits)
- Clerical support
- Training & educational materials
- PC and related software for data base and net work
- Supervisor recognition lunches
- Office supplies

Financial Results

1. First year expenses
2. First year savings depends on management's support of the program

Implementation Time Line

To properly implement a formal RTW program, it will take about a year. The most important thing to remember is that there should be a "buy in" by top management as well as supervisors. If you do not have this buy in, the program will be set up for failure.

If you are interested in a Return to Work Program and would like to have more information, please fee free to contact Cyndi Robinson, CM Claims Management @ 909.920.4159 or email cmclaimsmgt@msn.com.