Is Your Hospital Overspending on its
Workers Compensation Program?
With group health benefit costs soaring, the
concept of proactive claim management has been
successful in reducing cost of benefit programs for
many Wisconsin hospitals. Did you know that this
approach can also work extremely well at finding
savings with workers compensation? At its core,
a work comp claim is no different than a group
health claim – each flows through similar channels of case management,
pharmacy benefit management, insurance carriers, PPOs and, of course,
the health system itself.
What can differ greatly between hospitals is how proactive the hospital,
and particularly the hospital’s broker, is in managing this process. Some
Modification Factor. The “mod” factor of your facility has a
direct impact on cost. Put simply, an average hospital has a
modification factor of 1.00. A hospital with a mod of 1.25 pays a
25 percent additional penalty for their historically higher claims.
In our experience, 1 in 3 modification factors is wrong, due to a
wide variety of reasons (often simple human error). Is yours being
checked and corrected? While we are on the subject, did you know
that you can forecast your modification factor a year in advance?
That can be very helpful in the budgeting process.
Large Claim Case Management. Who is helping to manage your
large claims? Workers compensation claims adjusters can carry
case loads of up to 250 claims! Many adjusters are too busy to
give each individual claim the attention it needs, allowing claims
that could be advanced or closed to languish and increase in cost.
Spotlight: Computer Purchase Program
Have you considered offering your
employees the opportunity to purchase new,
brand-name personal computers through
a voluntary payroll deduction program?
Our computer purchasing program through
PurchasingPower, has been developed to
offer personal computers from the world’s
leading manufacturers through payroll
deduction and w