• Menu
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • About
  • Contact
  • Privacy
 
Paradigm

Amaxx Workers Comp Blog

Reduce Workers Compensation Costs By 20-50%

Header Right

  • Home
    • Training Center
  • Search
    • Free Resources & Solutions
    • Subscribe to Free Newsletter
    • Create Free Training Center Account
    • Enroll in On-Demand Courses
    • Activate WC Mastery Membership
    • Request Strategic Coaching Session
    • Buy WC Guidebooks
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
    • Coaching
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login

Mobile Menu

  • Home
    • Training Center
  • Search
    • Free Resources & Solutions
    • Subscribe to Free Newsletter
    • Create Free Training Center Account
    • Enroll in On-Demand Courses
    • Activate WC Mastery Membership
    • Request Strategic Coaching Session
    • Buy WC Guidebooks
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
    • Coaching
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login
  • About
  • Contact
  • Privacy
You are here: Home / Medical Cost Containment / Injury Duration Guidelines and Transitional Duty Cost Calculator Work Together

Injury Duration Guidelines and Transitional Duty Cost Calculator Work Together

June 7, 2010 By //  by Rebecca Shafer, J.D. Leave a Comment

An injury duration guideline is a tool employers use to get an idea of how long an injured employee should be out of work for a particular injury. Often, even though carriers know about injury duration guide, employers may not, especially employers with someone new handling workers’ compensation claims. AMA, Dr. Presley Reed are the two most note-worthy sources of this type of guideline. Workers Comp Kit has a one-page that is laminated that’s a good quick reference, especially good for training or to show senior management to show the type of tools that enpower the employer.

Click Link to Access Free PDF Download

“The 6-Step Process To Determine Workers’ Comp Injury Causation”

An injury duration quidelines do not replace a physician’s advice, but it gives the employer a sense of whether the time injured employees are actually out of work or say they need to be out of work matches up with the time the guideline’s gives for a particular injury.

A Scenario

  1. An employee has a fractured knee.
  2. The employee says s/he will be out of work for six months. Because you know this time frame is disproportionate to a normal injury of that type you can dig more deeply into why the employee thinks six months off is needed.
  3. By replacing heavy work with light work (in your return-to-work program), the employer “saves” six weeks of lost wage indemnity payments.

The Transitional Duty Cost Calculator

Using a transitional duty cost calculator allows an employer to calculate the dollar amount (cost of an employee being out of work (OOW)) by multiplying the estimated number of days saved by the estimated average indemnity cost per day. Add this figure to your cost of replacement labor and your grand total cost of an out-of-work employee is quite daunting. (See link below for this FREE tool.)

To make the figure more frightening, divide your dollar amount by the company’s profit margin and you will see the amount of money it takes to “replace” lost expenses from an out-of-work employee.

A Scenario

  1. An employee with a fractured knee returning to work in six weeks on transitional duty saves 42 days of indemnity.
  2. If the average cost per dayis $200, and you pay a replacement worker $3,000, the transitional duty saves your company $190,000.00 if your profit margin is 6%.

Knowing what your true costs are when a worker is out on comp is a huge incentive to return injured employees to work as soon as they are medically able. (See ink below to try this handy tool.) It’s also a good reason to have a solid transitional duty or return-to-work program in place.

FREE DOWNLOAD: “The 6-Step Process To Determine Workers’ Comp Injury Causation”

Showing the dollar value of the savings of six weeks helps to gain management commitment for a transitional duty program.

Author Rebecca Shafer,
J.D. President, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact her: RShafer@ReduceYourWorkersComp.com or 860-553-6604.

FREE WC IQ Test: http://www.workerscompkit.com/intro/
WC Books: http://www.reduceyourworkerscomp.com/workers-comp-books-manuals.php
WC Calculator: http://www.reduceyourworkerscomp.com/calculator.php

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers’ comp issues.

©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@WorkersCompKit.com.

FREE DOWNLOAD: “The 6-Step Process To Determine Workers’ Comp Injury Causation”

Filed Under: Medical Cost Containment Tagged With: Injury Duration Guidelines

Related Articles

Use a Medical Director to Reduce Workers’ Compensation Costs

Use a Medical Director to Reduce Workers’ Compensation Costs

Reduce Work Comp Costs Through Effective Medical Care

Reduce Work Comp Costs Through Effective Medical Care

‘Patient-Driven’ Approach Promotes Focus on Injured Workers’ Behavioral Health to Improve Outcomes

‘Patient-Driven’ Approach Promotes Focus on Injured Workers’ Behavioral Health to Improve Outcomes

When to NOT Use Nurse Case Management in Work Comp

When to NOT Use Nurse Case Management in Work Comp

Know The Difference Between Sprain & Strain To Save Work Comp Dollars

Know The Difference Between Sprain & Strain To Save Work Comp Dollars

Whole-Person Care, Real Results: The Impact of Behavioral Health Expertise, from Injury to Recovery

Whole-Person Care, Real Results: The Impact of Behavioral Health Expertise, from Injury to Recovery

Use Effective Rehab Tools to Get Employees Back to Work

Use Effective Rehab Tools to Get Employees Back to Work

The Doctor Will See You: Using Treatment Parameters in Work Comp

The Doctor Will See You: Using Treatment Parameters in Work Comp

Get the Best from an Independent Medical Examination

Get the Best from an Independent Medical Examination

Value-Based Care Model Offers Solution to Wide Swings in Outcomes and Costs for Injured Workers

Value-Based Care Model Offers Solution to Wide Swings in Outcomes and Costs for Injured Workers

Careful Pre-Planning is Key to Mitigate Financial, Human Impacts of Catastrophic Injuries

Careful Pre-Planning is Key to Mitigate Financial, Human Impacts of Catastrophic Injuries

Episodes of Care Has the Power to Transform Recovery

Episodes of Care Has the Power to Transform Recovery

Train to Succeed

BECOME CERTIFIED IN WORKERS’ COMPENSATION

Proven Course Catalog & WC Toolbox Give You The Power To Achieve Lower Costs and Better Injured Worker Outcomes

VISIT WORKERS' COMP TRAINING CENTER

Free Download

The 6-Step Process To Determine Workers' Comp Injury Causation - FREE Download Click Here Now!

Previous Post: « Bed Manufacturers Don’t Go to Sleep on Injuries
Next Post: Airline Ground Worker Loses Leg Company Fined »

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

FREE DOWNLOAD

The 6-Step Process To Determine Workers' Comp Injury Causation - FREE Download Click Here Now!

Our Sponsors

ARCADIA - Enhancing Settlement Outcomes

The Structured Settlements Company
 

Catastrophic and Risk Solutions, Case Management Solutions, and Specialty Networks
 

Post-Settlement Administration
 

Medcor

Injury Triage, Onsite Clinics

Read Our Award-Winning Blog

Blog Categories

Search Our Archive

Subscribe to Our FREE Newsletter

Return-to-Work Essentials

Footer

Search Our Archive

Search our continually growing archive of over 2500 articles about Workers' Comp issues.

Quiclinks

  • Calculators
  • Terms & Abbreviations
  • Glossary of WC Premium Terms
  • WC Resources
  • Best Practices
  • Industries
  • Return-to-Work Essentials

RSS Recent Blog Posts

  • Use a Medical Director to Reduce Workers’ Compensation Costs
  • Focus on the Workers’ Comp Fundamentals – Part 2
  • Focus on the Workers’ Comp Fundamentals – Part 1
SUBSCRIBE TO OUR FEE NEWSLETTER
Let Us Help You Stomp Down the High Cost of Workers' Comp!
Top of Page ↑
  • Home
  • Training Center
  • Search
  • Membership
  • Products
  • Blog
  • About
  • Contact
  • Subscribe
  • Login
Copyright © 2022 Amaxx, LLC. All Rights Reserved. · Privacy Policy / Legal Notice