Help! What do I do with Safety in a Down Economy?
Times were good! Sam Smart, a brilliant young man, opened his business several years ago and watched it prosper. The excitement of success ran throughout his company and he rewarded good workers with good wages. Yes, times were good. However, as the housing market began to sag, fuel prices began to soar, and the economy headed south, Sam found himself in a tough situation. In a short time, sales dropped 35% and Sam began to “tighten the belt.” A year into the recession, sales were down 65% and Sam’s company was struggling to survive. Sadly, he had to lay off most of the good workers in whom he had invested time and good wages.
Perhaps you identify with Sam to some degree. What do you do in a down economy? Prudently, Sam evaluated every function of his company, every expenditure and every potential way to effectively cut costs without cutting the very livelihood of his company.
When it comes to safety and risk management, here are three money-saving ideas:
- Be Aware of Workers Compensation Fraud
- Be Diligent to Follow Protocols
- Mandate Safety
Be Aware of WC Fraud
To clear their minds of the financial hardships they face, Jeffrey Gymrat and his buddies gather for a friendly game of basketball at the neighborhood park. While driving hard for a layup, Jeffrey is undercut by an aggressive defender and crashes to the concrete playing surface in a heap. Fortunately, the wrist and elbow that struck the concrete in an effort to break his fall were not broken. However, Jeffrey landed with such a thud that it knocked the breath out of him. After several minutes, he was able to get to his feet, but could not stand up straight. He felt pain in his back.
Several months ago, in a financial squeeze, Jeffrey had to make the difficult decision to cancel his health insurance. Now, in need of medical attention, the wheels begin to turn, trying to figure out how to get the care he needs. Thus, he shows up to work on Monday morning, avoiding contact with supervisors and masking the pain he feels in his back. At 9:30 am he’s on his way to a doctor to explain how he slipped and fell at work and is now feeling pain in his back. When asked about the swollen wrist, Jeffrey says that must have happened when he tried to protect himself in the fall.
Jeffrey’s boss, Sam Smart, has just “bought” back and wrist injuries that did not happen at work! Unfortunately, this is not an isolated incident. In a difficult economy, workers are prone to consider dishonest measures. Consider these ideas:
- Be aware of warning signs and red flags.
- Keep an open ear to activities workers might engage in on personal time. If you sense any degree of risk in those activities, document that information.
- Be on the lookout for how your workers show up to work. Are they moving slowly or do they appear to be stiff? Do they have bumps and bruises? If so, find out why.
- If a worker incurred an injury during personal time, interview the employee and write a report of the findings. File a CBR Injury Report and note that the injury happened away from work. (This non-work-related injury will not be reported, but will be kept on file in our office.)
- DO NOT allow a worker to perform any activity that may exacerbate the injury. Remember: even if the incident happened away from work, if it is exacerbated at work, IT IS A WORK-RELATED INJURY…and you just “bought” it! Instead, contact CBR for instruction on how to proceed with this employee.
Be Diligent to Follow Protocols
Rather than follow the company’s protocols instructing him to report to a specific medical facility, Jeffrey Gymrat goes right around the corner to the hospital emergency room for treatment of his back injury. After a very long wait in the waiting room, the ER physician quickly assesses Jeffrey’s condition and refers him to a high-priced specialist who can’t work Jeffrey into the schedule for 4 weeks. In addition, he puts Jeffrey on “No Activity” status.
The problems here multiply quickly! Here’s what you need to know to save money:
- Medical expenses at hospital ER’s are 400-500% higher than those at medical facilities which are contracted.
- Hospital physicians are motivated to “get them in, get them out.” Thus, patients needing further care will always be referred out…usually to high-dollar specialists whose fee schedules are not contracted. (Likewise, rarely are they a preferred provider.)
- Hospital physicians are not focused on the work aspect. Thus, they have disregard for whether or not there is a Return-to-Work program. They tend to place workers at “No Activity.” (This enables the employee to sit at home collecting compensation for as long as he can avoid showing up for a doctor’s appointment!)
- When referred out, physicians may not be able to schedule an appointment for weeks, thus increasing the length of time compensation is due.
- Occupational medical facilities provide contracted fees, are preferred providers of our WC carrier, have a mindset to return workers to work even if restricted, and are time-sensitive to get appointments in a timeframe that allows us to keep the claim from becoming much more costly.
Now, more than ever, it is important to cut your workers comp costs by following protocols. CBR has set up protocols for every client company. Whenever possible, we set protocols up with Concentra Medical Centers. They have multiple locations in cities nationwide. Take 15 minutes to show the Safety Orientation video (available in English and Spanish) to all employees at your next company meeting.
Mandate Safety!
Make safety a high value! Safety is important in any economy, but be mindful that, in a down economy, your premium levels go down. That means every injury has a much greater effect on your loss ratio, your emod and your rates! Avoid taking an additional “hit” in these tough economic times. Find out more about your costs and Why Safety is Important.
Guess what? Through it all, Sam Smart got a little smarter! He mandated safety at his company and he encouraged his workers to make An Extra Effort for Safety’s Sake!
Jump on board and do the same! (Why not use this video at your next safety meeting!)
Please visit CBR’s Safety Resources and Safety Webinar pages for lots of helpful tools and information. If you are a CBR client and do not know your password, contact Kym Varner at 602-200-8500 x2012 and begin taking advantage of these great resources now!
Contact us or request a proposal for more information!
