Overview

Workers’ compensation costs skyrocketed for public and private employers in California in recent years, generating great debate and resulting in significant reform in 1995. Total workers’ compensation costs were only about $9 billion. Today they are $30 billion. Clearly, it is a situation out of control. The cost to productivity in California is even greater.

However, recent legislation to reform the system does show promise. The evidence-based Practice Guidelines that have been developed by and for the medical community to follow in the treatment of injured workers grew out of the legislative reform. It is the result of extensive research on the part of a multi-disciplinary group of medical experts and multiple state agencies.

The purpose of the Practice Guidelines is to create a standardization of treatment for injured workers among all medical providers. This consistency is expected to facilitate a more efficient, effective and less costly system.

In the past the Workers’ Compensation system has been very divisive and at times even hostile. It pitted employers against employees. The climate has been so adversarial that the gap created between employees and employers often resulted in unnecessary litigation and even ill will. No one was served well with this outcome.

Timely communication between all parties is the key to a quick and safe return to work for the injured employee. An integrated approach to injury prevention, management and return to work will generate this outcome. The new reform presents a unique opportunity for employers to exercise significant control over the timely, safe return of their most valuable asset — their employees — to optimum productivity.

The old system lacked accountability and left lots of cracks for the truly injured too fall though and for fraud to slither in. The new system has the potential to minimize these cracks while creating an opportunity for enhanced care and significant savings. This, however, will not happen automatically. Employers must be proactive by implementing complementary programs that will help to capitalize on these opportunities.

Implementing an Injury Management System that is consistent with and complementary to the mandated guidelines provides a tremendous opportunity to integrate in-house preventative programs and return to work processes that will result in huge dollar savings and enhanced employee morale. Your employees are your most valuable asset. Implementing programs that synergistically facilitate their safe and timely return to productivity serves both employers and employees well.

I invite you to consult the Solutions and Client Savings areas of this site to learn more about our cost savings strategies.

All contents © 2003 Body Incorporated. All rights reserved.