Electronics Manufacturer
Saves $85,500 in 3 years
Insured
The business is an electronics manufacturer. The company employs 110 workers
and has gross revenues of $30 million.
Situation
After splitting from a large national manufacturer, the company saw its
Mod jump to 1.45, causing uncompetitive labor costs and a loss of profitability.
Assessment
It was determined that the increase in the Mod was a result of an increase
in the severity of repetitious injuries to hands and wrists, due to the
type of light assembly work involved. The Mod was also being driven up by
a number of malingering claims and too much reliance by the manufacturer
on their insurance company to manage the claims after they happened, resulting
in higher premium costs. The manufacturer had no established return-to-work
procedures nor 24-hour claim reporting requirements.
Solution
The focus was on lowering the severity of the hand and wrist injuries and
improving the outcome of the malingering claims. A Certified WorkComp Advisor
(CWCA) set up an occupational clinic relationship with pre-employment testing,
including grip testing to eliminate potential future claims. A clinical
relationship was also put in place for existing claims, the CWCA set up
a return-to-work process and made the clinic aware that light duty was available
as a return-to-work option. This assured early intervention, proper medical
treatment and a speedier return to work. He also trained supervisors on
24-hour reporting requirements and the impact that Workers’ Compensation
has on the employer’s costs, and started regular safety trainings.
Furthermore, he worked with management to demonstrate the value of this
process by showing them how much money they would save.
Result
Malingering has been eliminated and outcome from severe claims has been
reduced from $35,000 to $6,500, resulting in savings of $85,500 for three
years. |