RD421 - Report of the Department of Human Resource Management Workers’ Compensation Program Status and Recommendations of the Loss Control Program Fiscal Year 2016 – October 30, 2016


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 included:

* 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 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, order and construct workspaces;

• Ordered and took delivery of computers and other equipment;

• Received authorization from the Secretary of Administration to hire a loss control lead specialist and two loss control specialists;

• Advertised recruitment for the three positions;

• Identified two individuals who met criteria for each of the two types of positions;

• Completed an updated actuarial report entitled Workers’ Compensation Experience Statistics by Agency based on reported losses as of June 30, 2016 (attached.) The agencies identified with the most adverse loss history in the updated report are:

* Department of Motor Vehicles
* Virginia State Police
* University of Virginia Medical Center
* Mental Health Treatment Centers
* Department of Veteran’s Services
* Department of Alcoholic Beverage Control

Recommendation

The recommendation is to

• Complete hiring of the loss control staff through competitive recruitment;

• Complete loss control surveys of the state agencies added in the most recent study as identified by the program’s actuaries while the new staff completes orientation and review of previously completed loss control surveys; and, based on the results,

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