Strengthening Workers' Compensation Claims Management: The Power of Shared Balanced Scorecard Goals

In the realm of workers' compensation, effective claims management is crucial to minimizing costs and ensuring positive outcomes for both employers and employees. One of the most impactful strategies for achieving this is developing shared balanced scorecard goals between claims departments and their clients' risk management teams. This collaborative approach not only aligns priorities but also drives tangible improvements across multiple key areas. Here’s why embracing this strategy can make a difference.

1. Measuring Total Lost Time Days from Work

One of the most significant metrics in workers' compensation is the total number of lost time days. By setting shared balanced scorecard goals that focus on reducing this number, both claims and risk management departments can work together to identify the root causes of extended absences and implement targeted interventions. This might include early intervention strategies, effective communication with injured workers, and proactive return-to-work programs that help employees transition back to their roles as soon as medically appropriate.

Shared goals in this area foster a more coordinated effort to manage claims efficiently, minimizing the disruption caused by worker absences and reducing overall costs for the organization.

2. Improving Initial Claims Reporting

Timely and accurate claims reporting is the cornerstone of effective workers' compensation management. When claims and risk management departments align their goals around improving initial claims reporting, they can streamline processes, reduce delays, and ensure that claims are handled more efficiently from the outset. This collaboration might involve developing standardized reporting procedures, providing training for supervisors and employees, and leveraging technology to capture and transmit information quickly.

A focus on improving initial claims reporting not only speeds up the claims process but also sets the stage for better outcomes, including faster resolutions and more accurate claim assessments.

3. Reducing Open Litigated Claims through Collaborative Strategies

Litigated claims can be a significant drain on resources, both in terms of time and money. By including goals related to reducing open litigated claims in their shared balanced scorecard, claims and risk management departments can work together to develop strategies that minimize the need for litigation. This might include regular block settlement meetings, where multiple claims are reviewed and resolved in a single session, as well as involving defense counsel early in the claims review process.

Collaboration in these areas helps to identify potential issues before they escalate, fosters a more proactive approach to claim resolution, and ultimately leads to fewer cases going to court.

4. Involving Defense Counsel in Claims Reviews

Incorporating defense counsel in regular claims reviews with clients can provide valuable insights into potential legal challenges and help shape strategies for claim resolution. By setting shared goals around this involvement, both claims and risk management departments can ensure that they are not only addressing claims from a legal standpoint but also considering the broader impact on the organization.

This collaborative approach allows for a more holistic view of each claim, enabling better decision-making and more effective resolution strategies.

5. Engaging Loss Prevention to Reduce Claim Frequency and Severity

Preventing claims before they happen is always preferable to managing them after the fact. By involving loss prevention teams in the development of shared balanced scorecard goals, claims and risk management departments can take a proactive stance on reducing the frequency and severity of claims. This collaboration might involve analyzing trends in workplace injuries, conducting safety audits, and implementing targeted training programs to address specific risks.

When all parties are aligned on the importance of loss prevention, the result is a safer work environment, fewer claims, and lower overall costs.

Conclusion

Developing shared balanced scorecard goals between claims departments and their clients' risk management teams is a powerful strategy for improving workers' compensation outcomes. By aligning on key metrics like total lost time days, initial claims reporting, litigated claims, defense counsel involvement, and loss prevention, these teams can work together more effectively to reduce costs, improve employee outcomes, and enhance overall organizational performance.

This collaborative approach not only strengthens the relationship between claims and risk management but also drives meaningful, measurable improvements in how workers' compensation claims are handled. Embracing this strategy can lead to a more efficient, effective, and proactive claims management process that benefits everyone involved.