July 29, 2002 How to Take Advantage of Transitional Work (Article as it appeared in Columbus C.E.O.)

In 1993, the Ohio General Assembly enacted House Bill 107, prompting the Ohio Bureau of Workers’ Compensation (BWC) to reinvent itself, outsourcing its medical case management function to private sector Managed Care Organizations (MCOs). Ohio’s new system gave all state-funded Ohio employers the opportunity to select an MCO to medically manage their workplace injuries.

Today, Ohio’s MCOs are directly responsible for reporting new workplace injuries to BWC while managing those injuries through successful return-to-work programs. In order to achieve the highest return-to-work rates and lowest workers’ compensation costs possible, Ohio employers should strongly consider developing a "transitional work program" for their operation, says William W. Pfeiffer, president and CEO of Columbus-based CareWorks.

Why Transitional Work? There's never been a better time for transitional work in Ohio, Pfeiffer says. Large corporations and small businesses can significantly reduce their direct and indirect human resources costs and positively impact their overall workers’ compensation premium by utilizing transitional work, he says.

National statistics show indirect costs for a lost-time workplace injury claim can be up to four times greater than direct claim expenses. However, Pfeiffer says, by transitioning injured employees back into their workforce quicker and safer, employers can avoid many of these indirect costs entirely.

By achieving timely return-to-work, employers also can lower their workers' compensation costs and improve their bottom line. "Transitional work can be considered a guaranteed return on your human resources investment and your most valuable asset – your employees," Pfeiffer says. "By helping injured employees smoothly transition back to their original positions, you’ll improve their self-esteem and promptly restore the existing co-worker and management relationships."

How does one create a transitional work program? When considering the development of such a program, there are four fundamental components to consider – design, benefits, implementation and costs – to ensure your program is successful, Pfeiffer says.

Design Develop a progressive, individualized return-to-work program focused on transitioning injured workers with temporary physical limitations back to their original jobs as quickly and safely as possible, Pfeiffer advises. Your program should include an overall analysis of your company’s operations, he says. This analysis should include detailed descriptions for each employee job task performed, labor-management collaboration, program policy development and continual program evaluation to measure effectiveness. In addition, your program may include on-site therapy tailored to specific injured workers.

Benefits By reducing overall employee absences, employers can realize direct medical cost savings and reduced workers’ compensation premiums, Pfeiffer adds. In addition, by nearly eliminating the need to hire and train replacement employees, employers can avoid the unnecessary delays and complications created when key employees are missing. And by returning an injured employee back to their normal day-to-day employment setting quickly and safely, employers can lessen the potential for legal and medical complications, Pfeiffer notes.

Implementation Your MCO can serve as your central point of contact throughout the life of your Transitional Work Program, coordinating your program’s development with your selected Transitional Work developer. A comprehensive Transitional Work Program application – including detailed job analyses, policies and procedures – is submitted to BWC for grant approval.

Costs Worried about what a Transitional Work Program might cost? Upon approval of an employer’s application, BWC’s Transitional WorkGRANT$ funding will cover 80 percent of a program’s development costs, Pfeiffer says. The employer is responsible for little or no direct costs for their program’s development, within the limitations and guidelines of BWC’s WorkGRANT$ program, he says.

Pfeiffer notes since Ohio’s private medical management for workers’ compensation began in 1997, MCOs have expanded their role, improved their effectiveness and helped Ohio’s employers better manage their workplace injuries than ever before.

"By continually promoting, supporting and developing sound programs like Transitional Work, MCOs will continue to help Ohio employers reduce their workers’ compensation costs and improve their bottom line," Pfeiffer says.

William W. Pfeiffer is President and CEO of Columbus-based CareWorks. Operating under the Ohio Bureau of Workers’ Compensation’s Health Partnership Program, CareWorks provides medical management services to 60,000 employer customers, representing more than $600 million in workers’ compensation premium.