Workers' Compensation Past Performer
Published: 12-Aug- 2011 | Comments: 0
Workers’ Compensation Past PerformerSM (WCPP) is a proprietary tool developed by Marsh for workers’ compensation programs that provides an analysis of workers’ compensation claims and identifies potentially excessive costs and expenses. WCPP is designed to assist you in determining and quantifying where lost economic opportunities are occurring. By selecting a strategic sample of closed files from the last two to four years of your workers’ compensation claims, an extrapolation of total leakage can be formulated for the entire file set outcome
To address the need for knowledge on outcome and causation in your workers’ compensation program, Marsh developed a proprietary tool called Workers’ Compensation Past Performer (WCPP). This tool provides you with the ability to identify potentially excessive costs and expenses in your workers’ compensation program and the reasons why this may be occurring.
The WCPP tool calculates the workers’ compensation lost economic opportunities (or “leakage”) in the categories of:
- disability duration;
- medical management;and
- claims management/recovery.
By utilizing further drill-down analysis, we are able to link leakage data to cost drivers and provide you with a detailed executive report of findings. This allows you to better understand the financial effect as well as the sources of overspending in your workers’ compensation program.
Calculates Trended Leakage
The WCPP process begins with a strategic, statistically valid sampling of the last three years of your closed indemnity claims. Critical claims data is then preloaded into the WCPP tool. Our trained workers’ compensation consultants then profile both your company and your claims administrator to determine what processes and policies are in place relative to injured workers and their claims. Selected files are then reviewed to gather additional claims information that is also uploaded into the WCPP tool.
Using proprietary outcome modeling with embedded objective industry benchmarks, guidelines, and standards, the WCPP tool is designed to calculate your claims leakage.
By utilizing this drill-down analysis, we are able to link leakage data to cost drivers and provide you with a detailed executive report of findings. This allows you to better understand the financial effect as well as the sources of overspending in your workers’ compensation program.
In-Depth Analysis of Lost Economic Opportunities
Before implementing changes to your workers’ compensation program, it is important to understand the spectrum of potential causes for increases in your workers’ compensation program.
The WCPP report allows you to take a more in-depth view of your claims manager’s activity as well as your internal post-loss practices, and prioritize a series of solutions to improve your workers’ compensation costs. This objective analysis of your workers’ compensation program can provide you the opportunity for productive growth and change in order to potentially improve outcomes for injured workers and reduce excessive costs.
Continuous Change and Improvement
Changes in business operations frequently have unintended consequences, particularly with workers’ compensation. The following changes can produce dramatic increases in your workers’ compensation programs:
- rapid business growth in same or new locations;
- reduction in business operations including downsizing or plant closures;
- conflict or disputes with labor union;
- management changes; and
- company policy changes.
In addition, external influences such as legal precedents, reforms in legislation, and changes in treating patterns by physicians make workers’ compensation programs subject to continuous change. Whether you experience any one or all of these conditions, your workers’ compensation costs can increase.
WCPP was developed to assist employers with the identification of potentially excessive costs and expenses in your workers’ compensation program and the reasons why this may be occurring.
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