effectiveness of bwc’s safetygrant$ program. july 1999 – june 2003 results o no claim required...

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Effectiveness of BWC’s SafetyGrant$ Program

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Effectiveness of BWC’s SafetyGrant$ Program

July 1999 – June 2003 resultso No claim required to complete an application until

November 2001

o Employers reported OSHA recordable information, turnover, and risk factor scores

o Ergonomic interventions only

o Baseline data: one year for early recipients; two years for later recipients

o Follow-up data: two years

Effect of SafetyGrant$ interventions on risk factor scores

N = 892 applications

41-percent improvement

Time period: July 1999 – June 2003

Effect of SafetyGrant$ interventions on CTD incidence rate

N = 892 applications, Standardized per 100 full-time employees

14-percent improvement

Time period: July 1999 – June 2003

Effect of SafetyGrant$ interventions on lost days due to CTDs

N = 892 applications, Standardized per 100 full-time employees

56-percent improvement

Time period: July 1999 – June 2003

Effect of SafetyGrant$ interventions on restricted days due to CTDs

N = 892 applications, Standardized per 100 full-time employees

42-percent improvement

Time period: July 1999 – June 2003

Effect of SafetyGrant$ interventions on turnover

N = 892 applications, Standardized per 100 full-time employees

62 percent of companies improved in turnover or stayed at 0 percent

Time period: July 1999 – June 2003

Cost benefit information (injury prevention) July 1999 – June 2003o $37,012,176 was spent on the interventions

(including the employer contribution).

o The average amount spent was $41,493.

o The most spent was $565,000. The least spent was $530.

o 3,374 OSHA recordable injuries per year occurred in the baseline period (average 422 days baseline period).

o 2,170 OSHA recordable injuries per year occurred in the follow-up period (two years)

o Average workers’ comp claim cost for year 1999 = $10,610 (National Safety Council)

Cost benefit calculation (injury prevention)o ROI (years) = $ spent / [average claim cost X (# claims

in baseline per year - # claims in follow-up per year

o ROI (years) = $ 37,012,176 / [$10,610 X [(3,901(365/409) – 4,340(365/730)]

o ROI (years) = $37,012,176 / $13,913,238 per year

o ROI = 2.7 years

July 2003 – April 2009 results o A workers’ compensation claim was required to complete an

application.

o All types of safety interventions (no longer exclusively for ergonomics)

o Baseline data: two years

o Follow-up data: 584 days average

• Some of the companies have not completed the program

o Employers are required to report workers’ compensation claims related to the intervention.

o Those employers that have not yet reported any follow-up data are not included in the results.

o Data is from 419 applications reported through April 20, 2009.

Effect of SafetyGrant$ interventions on incidence rate

N = 419 applications

Adjusted per 200,000 hours

56-percent improvement

Time period: July 2003 – April 2009

Cost benefit information (injury prevention) July 2003 – April 2009o $16,460,656 was spent on the interventions

(including the employer contribution).

o The average amount spent was $39,285.

o The most spent was $228,923. The least spent was $509.

o 996 claims per year occurred in the baseline period (two-year reporting).

o 451 claims per year occurred in the follow-up period (with the average reporting being 584 days).

Cost benefit information (injury prevention) July 2003 – April 2009o The medical costs for the two-year period before the intervention

was $8,239,891.o The indemnity costs for the two-year period before the intervention

was $6,283,845.o The total claims costs for the two-year period before the intervention

was $14,523,736.o The medical costs for the 584-day follow-up period after the

intervention was $1,551,875.o The indemnity costs for the 584-day follow-up period after the

intervention was $878,938.o The total claims costs for the 584-day follow-up period after the

intervention was $2,430,813.

Cost benefit calculation (injury prevention)o ROI (years) = $ spent / (claims cost in baseline per year

– claims cost in follow-up per year)

o ROI (years) = $16,460,656 / [$14,523,736(365 days per year/730 reporting days) - $2,430,813(365 days per year/584 reporting days)]

o ROI (years) = $16,460,656 / $ 5,742,609 per year

o ROI = 2.9 years*

* Does not include any future claims costs, so ROI should improve some over time