The effects of a multidisciplinary case management method on the costs of a workers' compensation plan

Abstract

This research paper had a defined purpose of investigation of the internal policies and procedures that were used to administer and manage the day-to-day functioning of the workers’ compensation program at MidWest Regional Hospital. The goal of this study was a qualitative and quantitative assessment of the workers’ compensation internal policies and procedures program at MRH using an author-designed list of best practices. As a starting place, a literature review focused on an internal multidisciplinary case management model. Analysis of approximately 100 journal articles, books and original research data from North America and Europe indicated, when properly implemented, that this type of management program may significantly reduce the overall costs of an organization’s workers’ compensation program. Other specific cost reduction factors were reviewed for compatibility with the multidisciplinary case management model. Information from the literature review suggests there are several functions such as illness and injury trend analysis and hazard abatement, that utilized many of the same resources as an established multidisciplinary case management model and could be efficiently combined to further reduce incidence of accidents and illnesses. It seems likely that lowering the illness and injury incidence would reduce the workers’ compensation program costs. An author-designed checklist of best practices was compiled with data from organizations that have shown a noted reduction in workers’ compensation costs. The elements were selected based on the specific change in practices within the organization that resulted in significant cost reduction. These elements were then complied into a “Best Practices” checklist. The elements of that checklist were compared to the current written policies and procedures directing the staff of the workers’ compensation program at MidWest Regional Hospital. The elements listed will be noted as either having a written, current policy and practice or not having a written policy or practice. There is also a comments section after each element for clarification and remarks by the researcher. The researcher found MidWest Regional Hospital had a favorable foundation for a comprehensive workers’ compensation program. Six of 15 elements from the best practices chart had written policies for direction. Three other elements did not have written policies, but the elemental functions were being performed. Of the remaining six elements on the chart, only one was contradictory to the best practices chart. Considering the percentage of the best practices chart element functions that were addressed with written policies and procedures and functions that are being performed without written policies and procedures at MRH, the workers’ compensation program needs to be reviewed and revised, not completely restructured.