OCI Study Demonstrats the Effectiveness of a Return to Work Prgram on Short Term Disability Claims

June 24, 2010 - PRLog -- June 24, 2010 Denver, Colorado –OCI, a Data Integration and Software Services provider, conducted a study on the effectiveness of a Return to Work Program (RTW) on Short Term Disability claims for a regional health system of five hospitals, which achieved a 26 percent savings on STD expenditures and an 8 to 1 return on program investment.

“With the cost of health care continuing to rise faster than inflation, employers are feeling increased pressure to contain workers’ compensation and disability costs,” said Archie Anderson, President of OCI.     “This employer had implemented a RTW Program for Workers’ Compensation less than 5 years ago, but wanted to measure the effectiveness of RTW for Short Term Disability (STD) in a pilot before implementing it across the entire organization. The study measured a dramatic reduction in STD costs.  RTW programs can increase the likelihood that claims are resolved positively, discourage fraudulent claims and avoid replacement and training costs of new employees,” said Anderson.

The RTW program was implemented among a limited number of employees related to STD leaves.  In the analysis, the study group was compared to a control group of employees who did not participate in the RTW program.    The analysis compared Lost Work Days/FTE for the 12 months prior to any RTW efforts against the first 12 months of RTW program operation for STD.  Lost workdays per FTE is a robust metric, in that it accounts for changes in claim incidence, as well as changes in the duration of incurred claims.  

The company realized cost savings through a reduction in both claim duration and claim incidence, by returning employees to modified duty during the elimination period, which prevented disability claims.  When employees did transition to STD, RTW efforts continued in order to return them to work as soon as possible. This was achieved through an increased focus on managed care and efforts to find modified duty where available.  

The RTW program significantly reduced STD claims and durations for the study group.  Lost work days per 100 FTE fell for the study group by 14.5 percent, while the control group increased by 7.5 percent.  For every lost work day reduced, the company also realized a reduction in the incremental cost of replacement workers.  The estimated annual savings of the RTW program was $651,943. The annual cost of running the RTW program for the first year was $74,400, including salaries and administrative fees.  


To read the full whitepaper on this study, Return to Work Program Impact Analysis, please visit http://www.oci.com/news/view/42

About OCI - OCI is a data integration and software services provider that helps companies make better-informed decisions about their risk management, employee benefit, and technology dependent programs.   www.oci.com

Media Contacts:
Stacey McBride
Marketing Manager
(303) 967-9663
stacey_mcbride@oci.com

Mark Rieger
Managing Director
ProAmericas Marketing & Media Relations
markr@proamericas.com
303-520-4524OCI Study Demonstrats the Effectiveness of a Return to Work Prgram on Short Term Disability Claims