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A Computerized Functional Skills Assessment and Training Program Targeting Technology Based Everyday Functional Skills

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Published on: February 13, 2020

Contract case managers prove cost effective in federal workers' compensation programs.

Timothy Michael Mallon¹, Marianne Cloeren, Lisa Michelle Firestone

¹Department of Preventive Medicine and Biometrics, Uniformed Services University, Bethesda, MD 20814, USA.

Military Medicine

|April 19, 2008

Summary

Contract case managers significantly reduced workers' compensation (WC) costs and prevented injuries. This pilot study showed a 3.52 return on investment, demonstrating their cost-effectiveness in managing WC programs.

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Area of Science:

Occupational Health
Healthcare Management
Workers' Compensation

Background:

Workers' compensation (WC) programs face challenges in managing costs and preventing injuries.
The effectiveness of external contract case managers in optimizing WC outcomes is not fully established.

Purpose of the Study:

To evaluate the cost-effectiveness of contract case managers in reducing WC costs.
To assess the impact of contract case managers on injury prevention within organizations.

Main Methods:

Contract medical case managers were deployed to four installations utilizing private industry best practices.
Needs assessments and targeted interventions were implemented, focusing on command support and case management processes.
Efforts were made to minimize lost work time and expedite the review of long-term WC cases.

Main Results:

The implementation of contract case managers resulted in $4.4 million in savings against a cost of $1.25 million, yielding a 3.52 return on investment.
Seventy-three workers were successfully transitioned from long-term disability through vocational rehabilitation, modified duty placements, medical retirement, or benefit termination for non-compliance.
Case managers improved WC program effectiveness and reduced lost work time.

Conclusions:

Contract medical case managers are a cost-effective strategy for reducing workers' compensation costs.
The findings support the integration of contract case management services to enhance WC program efficiency and outcomes.