Comparison of workers' compensation costs for two cohorts of injured workers before and after the introduction of managed care

Judith Green-McKenzie, John Parkerson, Edward Bernacki

Research output: Contribution to journalArticle

Abstract

A comprehensive safety and managed care initiative was instituted in 1991 at a large self-insured medical center in an effort to reduce workers' compensation costs. It features an on-site case management team, a preferred provider organization, and safety engineering efforts and ergonomic controls used proactively to aggressively identify and abate workplace hazards. Two worker populations were followed up longitudinally for three years before and after the initiative. Costs incurred by each cohort were compared. A 50 % reduction in total expenditures was seen in the managed care cohort. The hospital component of the system saw a decrease in compensation of 62 % for temporary total disability and 38 % for permanent partial disability. Medical expenditures decreased 50 %. Dramatic reductions in costs are achievable, without compromising quality of care, when managed care principles and safety efforts are emphasized.

Original languageEnglish (US)
Pages (from-to)568-572
Number of pages5
JournalJournal of occupational and environmental medicine
Volume40
Issue number6
DOIs
StatePublished - Jun 1 1998

ASJC Scopus subject areas

  • Public Health, Environmental and Occupational Health

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