A large urban teaching hospital wanted to maintain a relatively low deductible as part of its professional liability program. At the time, the insurance markets were in turmoil, causing prices to rise more than 50 percent in some cases.

Lockton’s strategy was to structure a “corridor deductible” option, which resulted in allowing the hospital to secure the coverage it needed. In addition, the hospital was able to maintain low deductibles which held down the overall cost of insurance.

One Lockton client was enjoying an increase in revenue, but was not happy with the accompanying increase in workers’ compensation costs. Due to the nature of employee contracts, this healthcare staffing company had a limited amount of time to return workers to full duty and manage their worker’s compensation claims effectively. Lockton’s Claims Cost Control unit stepped in and helped the client hire an injury counselor. Lockton also restructured and centralized the post injury management process, and also installed their claims management software tool to help the client manage claims more effectively. Claims Cost Control then worked with the client to develop strategies that would shorten the length of lost time days. In the end, the client saw great results across the aboard. Compared against the previous year, the client saw a 28 percent reduction in total incurred workers’ compensation costs and a 19 percent decrease in the average cost per claim.

With Workers’ Compensation costs increasing, a large healthcare staffing client looked to Lockton to help them reverse the trend. Lockton Claims Cost Control identified the potential for this client to turn things around by implementing the Claims Cost Control post injury management model. With some help from Lockton, the client hired an injury counselor and restructured their post injury management process. A major part of the process was the use of Claims Cost Control’s software tool, called Workers’ Compensation Claims Management System. With a more streamlined approach in place, the client won an award for best in class risk management practices. They also saw a 19 percent reduction in average cost per claim, as well as a 52 percent reduction in lost time days.

When a healthcare system faced significant healthcare cost increases, Lockton recommended a dependent eligibility audit as one strategy to solve the problem. The client agreed to conduct a comprehensive review of all spouses and children covered under its benefit programs. The client wanted to reduce future health plan costs as well as manage its fiduciary exposure and liability under the ERISA Exclusive Benefit Rule and limit Section 125 exposure. The 30-plus hospitals participating nationwide found that, on average, 12 percent of enrolled dependents were ineligible for healthcare benefits under the hospital’s guidelines. The client estimates first-year savings of $20 million while the ROI for this dependent eligibility audit is estimated between 500 percent and 1500 percent per hospital.

A large medical group needed administrative efficiency, reduced costs, and broader property and casualty coverage for its 19 locations. Even with several changes to senior management, Lockton’s persistence saved the client more than 15% on its premium and consolidated a confusing array of renewal dates and carriers.

A provider of rehabilitation program management services to long-term care facilities allowed Lockton to step in and take a look at their worker’s compensation program and a new Texas-based acquisition. The client needed a broker to analyze data to reduce the variable and fixed claims costs. Lockton brought up several new ideas regarding the structure of the Texas acquisition and how to avoid slip-and-fall claims. To date, the changes have resulted in a 25% reduction on fixed costs for claims, and variable costs are trending downward.

The recently hired Corporate Insurance Manager wanted to determine Workers’ Compensation best practices and enhancements opportunities for an entire national healthcare system. Lockton Claims Cost Control Consultants conducted site surveys at each hospital with recommendations for each location and a system-wide business plan.

Each of the hospital’s Workers’ Compensation Coordinators attended Lockton’s Injury Management training seminar. A customized software program was installed at each hospital to help them take a systematic approach to post-injury management and produce meaningful reports.

The result was a $2.1 million reduction in ultimate projected Workers’ Compensation loss costs over an 18-month period. In addition, $3.9 million in credits were offered to affiliate hospitals over a three-year period after implanting the Claims Cost Control program.