Cost Cutting Strategy Proven Again and Again


Recently we reported a Textron study which confirmed the wisdom of assigning nurse case managers to injured workers, reducing comp medical costs 14% per year from 2005-2008 for this employer of 25,000.  Now comes a similar result from a pilot project conducted by American Airlines and their TPA, Sedgwick Claims Management Services.
In the December 24, 2012 issue of Business Insurance, Roberto Ceniceros reports the results of American’s pilot study (no pun intended) involving its facilities in New York and New Jersey. Beginning in May, 2011 and continuing until August, 2012, American assigned registered nurse case managers to all lost-time, indemnity and/or off-work comp claims.  They measured results against the previous system of allowing adjusters discretion in which cases received nurse case managers.
At Newark Liberty International Airport, there was a 34% reduction in off-work days for injured employees. JFK showed a 22% decrease and an 11% decrease at LaGuardia. These results have caused American to implement this approach nationwide.
Claims management acknowledges the effectiveness of this approach but indicates it is most often used when there are other factors present with an employer, such as impending lay-offs or other downsizing of workforce or reductions in the staffing devoted to managing comp claims. And therein lies the folly – acknowledging the problem, agreeing upon the desired result but failing to implement the proven solution.
If you are responsible for the financial performance of something – a book of business, an insurance product line, a group fund or your company’s bottom line, don’t ignore the evidence.  We all know aggressive nurse case management works and it saves money.  But it has to be done.
We’ve done this over 185,000 times in the last 23 years.
Call us. We can do better.
William Faris, JD
Chief Executive Officer

Posted in OMCA