10 Ways to Save $10,000 in Human Resources: Managing worker’s compensation insurance can save your center money
Nosediving reimbursements and increasing competition for patient volume have squeezed revenue, and ambulatory surgery centers (ASCs) are constantly on the lookout for ways to streamline efficiency and save money. One rich source of savings is proper management of worker’s compensation insurance.MedHQ has worked with over 70 healthcare facility partners to find savings that also deliver the benefits of improving employee satisfaction and reducing risk. Through the process, MedHQ gleaned a host of key findings that guided the creation of the MedHQ 10-Point HR Audit (10-Point HR Audit). The 10-Point HR Audit identifies inefficiencies that, when addressed, can result in six-figure savings for a healthcare facility.
When it comes to keeping worker’s compensation insurance premiums in check, analysis of claims over the past five years shows the cost of claims generally follows the 80/20 rule. An average surgery center may have one worker’s compensation claim per year, and about 20% of the time, that claim will materially impact the worker’s compensation insurance premium.
A MedHQ Worker’s Compensation Claim Analysis from 2010-2015 found that, when broken down:
- 80% of claims cost $0 – $5,000
- 10% of claims cost $5,000 to $25,000
- 5% of claims cost $25,000 to $75,00
- 5% of claims cost more than $75,000 (and potentially $350,000 or more
For a $1,000,000 payroll, the insurance premium can range from $3,000 – $25,000. So the goal should be to keep it on the lower end of this range, promoting workplace safety to reduce the risk for potential accidents will save a center money.
“Keep an eye on worker’s compensation insurance to make sure it is managed well, and give the proper attention to claims that are red flags,” said Tom Jacobs, MedHQ CEO. “Typical big claims resulting from slips and falls or back injuries from lifting can really impact insurance. It’s burdensome to manage the situation, and then centers are left with an employee who can’t be productive.”
Click here to download the MedHQ white paper, “10 Ways to Save $10,000 in Human Resources.”
About the MedHQ 10-Point HR Audit
It takes approximately one or two hours for back office staff to gather the information necessary for the 10-Point HR audit. Typical savings = six figures. Request your risk-free 10-Point HR Audit today. If MedHQ fails to identify $25,000 in savings, the audit is free.