RD338 - Workers’ Compensation Program: Status and Recommendations of the Loss Control Program 2015 - October 30, 2015


Executive Summary:
Objective

The report provides an update on the status and recommendations to the Governor, the General Assembly, and the Director of Planning and Budget of the loss control program based on the annual review of each state agency’s loss control history, including the severity of workers’ compensation claims, experience modification factor, and frequency normalized by payroll.

Status

The Department of Human Resource Management received funding effective July 1, 2015 to establish a loss control unit within the Department’s Workers’ Compensation Program. Since then, the program has

• Worked with the Program’s actuary to identify agencies with the most adverse loss history; these agencies include:

* Department of State Police
* University of Virginia Medical Center
* Department of Game and Inland Fisheries
* Department of Juvenile Justice
* Department of Behavioral Health and Substance Abuse Services Mental Health Treatment Centers
* Department of Veteran’s Services
* Department of Alcoholic Beverage Control

• Conducted or scheduled loss control hazard surveys using the program’s contracted loss control service at each agency identified by the actuary;

• Located floor space to house the new unit;

• Worked with Department of Correctional Enterprises to design and order construction of workspaces;

• Initiated orders for computers and other equipment;

Unit staffing is pending confirmation of the date cubicle build-out is projected to be completed and computer equipment will be available. It is currently anticipated that the workspaces will be available in December.

A copy of the actuarial report entitled Workers’ Compensation Experience Statistics by Agency is attached to this report.

Recommendation

The recommendation is to:

• Complete loss control surveys of the state agencies with the most adverse loss histories as identified by the program’s actuaries; and, based on the results of the loss control surveys,

• Move forward with staffing a three-member, dedicated loss control unit with the Department of Human Resource Management Workers’ Compensation Program;

• Develop agency-specific action plans and consulting work to reduce the frequency and severity of workers’ compensation claims.