RD290 - Risk Management and Occupational Safety and Health Programs To Reduce Injury and Illness Incidence Rates and Claim Inventory Workout: An Accelerated Claim Closure Initiative


Executive Summary:
Marsh Risk Consulting conducted a study of occupational safety and health practices maintained by the Commonwealth of Virginia agencies. The study was promulgated by language included in Item 81, F.2 of Chapter 2, 2014 Special Session 1, which requires the Department of Human Resource Management to conduct a study with results due no later than October 1, 2014.

“The Department of Human Resource Management shall conduct a study, with the cooperation of all executive, legislative, judicial, and independent agencies, to include, but not be limited to, the impact of settling appropriate claims, the potential need for a risk management position in the Department of Human Resource Management to further assist state agencies not staffed with a risk management position, and the need for a risk management position for state agencies with a high incidence of claims who are not staffed with a risk management position. The department shall report its findings and cost savings recommendations for the state employee's workers' compensation program to the Governor and Chairmen of the House Appropriations and Senate Finance Committees no later than October 1, 2014.”

Richard A. Vohden, National Education, Public Entity Practice Leader and Senior Risk Consultant at Marsh Risk Consulting conducted this study on behalf of the Department of Human Resource Management, and the Commonwealth.

The study included a survey of basic occupational injury and illness prevention efforts all agencies should maintain in accordance with the Executive Order No. 109 (10), WORKPLACE SAFETY AND EMPLOYEE HEALTH.

Agency occupational injury and illness experience was evaluated. Agency injury frequency rates were calculated and those with high rates were identified. The Workers’ Compensation Experience Modification Ratings for each agency were compared and those with rates deemed excessive and representative of ineffective safety and health programs were identified.

Combined, the comparison of occupational injury rates, Experience Modification Ratings and survey feedback, agencies that may benefit from staffing a dedicated safety/risk management officer were identified.