Managed care cuts workers’ comp costs

A managed care program for workers’ compensation resulted in a 23% reduction in losses associated with workers’ compensation, a study at Johns Hopkins University and Hospital has shown.

The study was conducted from 1992-1995 and included assessment and correction of workplace safety problems, follow-up of injured workers to limit the numbers of days missed, and use of in-house Johns Hopkins doctors to treat injured workers, according to a report in the November, 1996 issue of the Journal of Occupational and Environmental Medicine.

The study reported that the money spent on medical care per worker dropped from $81 to $63 and that costs for new occupational injuries declined 43%.

Employees missing work due to on-the-job injuries decreased from 22 per 1,000 to 13 per 1,000. Researchers attribute the reduction to increased use of modified duty to return employees to work.