Creative management helps cut employee disability costs; case management and return-to-work programs are helping employers reduce expenses related to employee disability - includes related statistics on disability in the United States

Business & Health, Oct, 1993 by Nancy Varettoni

Andrzejewski says the rates have dropped, even though the number of covered lives increased by 300 to 1,300 in four years.

The corporate climate

At Lawrence Livermore Laboratories, which employs 7,500 people at facilities in Livermore, Calif., the company--not the treating physician--determines when an employee can return to work.

A doctor evaluates the employee's condition and determines restrictions on activity. Based on that information, a supervisor can determine how job responsibilities can be adapted to the employee's abilities, says Gene Dent, disability manager.

When an employee is sick or injured, the company immediately becomes involved in the case. Once an employee is out of work five days or more, the company contacts the treating physician. This tells the doctor that the company intends to actively participate in the effort to return the employee to work, says Dent. A staff doctor monitors the treating physician and prods those who are slow to provide information on an employee's progress. Dent keeps in touch with the employee.

Some employees feel they shouldn't return to work until they are fully recovered, Dent says. However, he pointed out that, depending on the nature of the illness or injury, the employee may never feel the same again. Therefore, company policy emphasizes that employees can return to work even though they may still experience some symptoms and that job responsibilities can be shifted to accommodate their condition.

For example, an employee was recently diagnosed with multiple sclerosis, a neurological condition. The progressive disease is characterized by tremors and poor coordination. The employee and supervisor discussed her physical problems, how they might affect her job performance, and what accommodations could be made. By bringing the situation out in the open. Dent says, the supervisor can provide the employee with the support she needs to stay on the job as long as possible.

Livermore Laboratories has also initiated steps to better document the results of its disability case management efforts, Dent adds. The creation of a centralized system to track cases companywide has heightened corporate awareness and helps the laboratories deal with employee disability cases consistently.

Though monetary savings are not available the laboratories experienced a 30% decline in the number of days lost due to illness or accidents from 1991 to 1992, Dent says. Dent also believes careful monitoring will help this company make informed judgments on how to handle expenses.

"Medical care is wonderful, but it's not enough," Dent observes. The objective of any program should be to help the employee deal with the problem and to return the employee to productive work as soon as possible.