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3 Steps to Create a Workers’ Compensation Containment

Two adult women wearing construction hats and vests looking over a clipboard at a job site.

Large workers’ compensation claims pose a massive risk for businesses, especially when the claims involve severe injuries and long-term illnesses. Not only will you have to deal with the increase in medical costs, but you also have to worry about hiring and training replacement employees, readjusting work schedules, repairing or replacing damaged equipment/property, and investigating the incident.

Fortunately, there is a way to help avoid increased workers’ comp costs and all the adverse effects that come with it. You need to have a contingency plan to help you prepare for when injuries happen and the large claims that follow. This plan is called workers’ compensation cost containment, a documented program developed and implemented to lessen workers’ compensation insurance costs.  Controlling these costs is vital to a business because it can directly impact the bottom line. 

Here are three tips for effectively implementing a workers’ comp cost containment.

1. Create A Safety Program

The first step is to draft policies, procedures and rules. Then, train your employees, especially on proper handling of tools and wearing PPE (Personal Protective Equipment). You can form a committee that consists of representatives from every department of your company and then assign them to enforce the safety policies. Another thing you need to do is ensure prompt medical care by pre-arranging a designated hospital/medical facility that your employees will be sent to in case of workplace accidents. Conduct workplace audits from time to time, in addition to safety meetings, to make sure that your plan is being enforced.

2. Create A Return-to-Work Program

To supplement your safety program, you also need to create a return-to-work program because when injured workers spend so much time away from work, this can lead to longer claims duration.  You can avoid this problem by designing a program that eases the employee back into his/her regular work schedule. Of course, do this only when the doctor has already cleared the worker to perform light duty at reduced hours.

3. Investigate Injuries and Narrowly Averted Accidents

Sometimes, the cause of a workplace accident could be from different factors. So you can’t immediately pinpoint whether it’s the safety protocol that’s lacking or the injured employee’s compliance with the protocol. This is the reason why you should investigate every accident that occurs in the workplace.  While talking to all witnesses, keep referring to your safety manual. Doing this will help you reassess your safety plan.

Though these strategies will help you remove the bottlenecks in workers’ comp and improve your bottom line, they require more attention and effort. If you don’t have time to investigate workplace accidents or come up with policies and a contingency plan, the best thing you can do is to partner with an expert like Direct PT/DX who can develop workers’ compensation solutions to not only manage costs but to also protect your employees.

Discover all the ways Direct PT/DX decreases workers’ compensation medical costs.

Contact Direct PT/DX today to find out more! (866) 214-5920 | scheduling@DirectPTDX.com

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