Workers compensation goals

There are at least six goals for workers compensation programs ... 

One could debate whether existing compensation laws achieve their goals. For example, some thought that employers would become more interested in safety by becoming responsible for indemnification of injured workers. However, the competition among insurance companies for employers business may have done as much to increase employer interest in safety. Many insurance companies selling workers compensation insurance provide loss control services to employers. Preventing work-related accidents helps employers reduce claims and lower insurance premiums. 

The main goal of workers compensation laws is to compensate workers for injuries caused by accidents arising out of and in the course of employment. This goal creates several issues about eligibility What is an accident What is an injury What does out of and in the course of employment include There are many interpretations to these questions. 

In some large, multi-contractor constmction projects, the project management firm or owner may use reductions in worker compensation claims to reward those contractors who meet project safety goals. 

Safety professionals should also be aware of the reality—managements usually set goals for improvement based on previous results. Historical measures to be discussed here—so-called lagging indicators—are OSHA rates, workers compensation costs, workers compensation experience rating, and control charts. 

At about the same time, reforms were introduced to provide for compensation of injured workers in other industries. This system, known as Workers Compensation y had similar goals to the FELA but used a fundamentally different approach. It started as a scheme for federal employees in 1908, and expanded rapidly between 1911 and 1921 when it was adopted by all but six states as the primary method of compensating injured employees in both the private and government sectors. Workers compensation is based on the legal principle of strict liability. Employers have to compensate injured employees regardless of who was at fault. Therefore, unlike FELA, courts do not have to decide on the comparative negligence of employer and employee. In effect, workers compensation operates as social insurance scheme. To provide for settlements, employers can either self insure or pay premiums to private or state-run insurance companies. 

Hospitals should look beyond the direct outcomes of accident prevention and ask What is the relationship between safety and other performance metrics in this organization Resources not consumed in worker compensation claims or treating avoidable patient complications can be redeployed to meet core organizational goals. Improved patient safety performance increases the efficiency of intensive care unit (ICU) bed use and increases throughput. Safe and reliable care lowers costs to payers and potentially increases market share. Effective patient safety practices increase staff loyalty, decrease staff turnover, and reduce associated hiring and training costs. 

---