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

Journal of Occupational and Environmental Medicine
Judith Green-McKenzieE J Bernacki

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.

References

Mar 1, 1988·American Journal of Public Health·J C Robinson
Nov 1, 1995·Journal of Occupational and Environmental Medicine·M P McGrailE J Bernacki
Nov 1, 1996·Journal of Occupational and Environmental Medicine·E J Bernacki, S P Tsai
Oct 1, 1996·International Journal of Occupational and Environmental Health·J F KrausC Kraus

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Citations

Oct 13, 2001·American Journal of Industrial Medicine·L RudolphK Dervin
Oct 29, 2005·Journal of Occupational Rehabilitation·Renée-Louise FrancheUNKNOWN Institute for Work & Health (IWH) Workplace-Based RTW Intervention Literature Review Research Team
Feb 9, 2007·Journal of Occupational Rehabilitation·Izabela Z SchultzRobert J Gatchel
Nov 17, 2010·Journal of Occupational Rehabilitation·Andy S K ChengMichael Feuerstein
Dec 28, 2000·Journal of Occupational and Environmental Medicine·E J BernackiS Tsai
Jun 20, 2001·Journal of Occupational and Environmental Medicine·S MusichD W Edington
Aug 23, 2001·Journal of Occupational and Environmental Medicine·S G AtchesonS J Bigos
Mar 26, 2002·Journal of Occupational and Environmental Medicine·Andrew E LincolnVirginia I Miller
May 12, 2006·Journal of Occupational and Environmental Medicine·Judith Green-McKenzie, Edward A Emmett
Jul 12, 2007·Journal of Occupational and Environmental Medicine·Edward J BernackiXuguang Tao
Sep 15, 2009·Journal of Occupational and Environmental Medicine·Xuguang TaoEdward J Bernacki
Aug 18, 2001·The Journal of Law, Medicine & Ethics : a Journal of the American Society of Law, Medicine & Ethics·B J Gilchrist
Sep 14, 2006·Journal of Occupational Medicine and Toxicology·Asim SahaPranab Kumar Nag
Oct 13, 2001·American Journal of Industrial Medicine·A E Dembe
Oct 13, 2001·American Journal of Industrial Medicine·L I BodenE A Spieler
Jul 13, 2019·American Journal of Industrial Medicine·Katherine SchofieldKim N Dauner
Dec 26, 2002·Journal of Occupational and Environmental Medicine·Judith Green-McKenzieEdward Emmett
May 25, 2021·Journal of Occupational and Environmental Medicine·Edward J BernackiXuguang Grant Tao

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