AUSTRALIAN manufacturers could save hundreds of millions of dollars a year by adopting a more ‘hands-on’ approach to managing injuries in the workplace, according to co-founder and director of occupational resource consultancy OccCorp, Dr Mary Wyatt.
Wyatt said that for many businesses, WorkCover costs were out of control.
“Each year, state and territory governments tax Australian business to the tune of $5bn to cover the cost of workers’ compensation. Rather than complaining about the size of their WorkCover premiums, companies should look at what they can do to reduce them,” she said.
“As with any insurance, WorkCover premiums are driven by the cost of claims. By adopting a far more interventionalist and personalised approach, OccCorp has demonstrated that claims costs can be reduced by in excess of 50%.”
Using data provided by the Victorian WorkCover Authority, OccCorp compared the WorkCover costs before and after the introduction of the ‘early intervention model’. The results revealed an overall reduction in claims costs of 50% following the introduction of the model.
Wyatt explained that under the existing system, a worker that has a knee injury for example would be sent to their GP who in turn may send them to a physiotherapist. If, after three weeks, there has been no improvement, the patient may be referred to an orthopaedic specialist. If an arthroscopy (surgical investigation of the knee) is required it can take a further five to ten weeks to get approval from WorkCover for the procedure.
“By this time, you have a worker who has been at home, in pain, for more than three months,” Wyatt said.
Under the early intervention model, by the second day following the injury the worker would have then assessed by an MRI. If an arthroscopy is warranted this would occur within the first week.
In addition Wyatt says her company would liaise with the worker’s supervisor to ensure the worker feels supported and encouraged to get well and return to work as soon as they are able.
“The key is to make sure that the worker knows they are wanted back at work and to prevent then getting used to sitting at home, leg up, watching TV, and becoming isolated and depressed,” Wyatt said.
“The company may then blame the worker, whilst the worker is blaming the company and the insurer.”
The system operates 24 hours a day, seven days a week and handles all worker’s injuries from the moment they happen.
“The company notifies OccCorp of an injury via a 1300 number at any time, immediately the worker is assessed and necessary surgery, medication or rehabilitation is begun immediately,” Wyatt explained.
“Time and again, we’ve have seen dramatic falls in claims costs within the first year, with a subsequent drop in WorkCover premiums.”
In addition the early intervention model has led to a reduction in claims by workers needing more than ten days off work and reduction in days lost.
OccCorp 03 9867 5666.