2222222222

2015 Teddy Award Winner

Checking Out Solutions

From celebrating safety success to aggressively rooting out fraud and abuse, Stater Bros. Markets is making workers’ comp risk management gains on multiple fronts.
By: | November 2, 2015 • 7 min read

Tamara Ulufanua-Ciraulo likes to think of the workers at her grocery store chain as “industrial athletes” — and all of the company’s safety, loss prevention, workers’ compensation and return-to-work programs are geared toward having them perform at their competitive best.

Advertisement




“The grocery industry is a physically demanding job, and you have to be fit, like an athlete — they are lifting, running, pushing, stretching, straining every day,” said Ulufanua-Ciraulo, director of insurance at Stater Bros. Supermarkets in San Bernardino, Calif.

The grocer supports its industrial athletes not only with measures to expedite their recovery after injuries, but also with a myriad of incentive programs to avoid injuries altogether, Ulufanua-Ciraulo said — “We’re pushing safety in all avenues of the store.”

Indeed, the team has developed a wide swath of innovative programs, from safety awareness training using dedicated onsite loss prevention consultants, to incentivizing employees for loss prevention, to expanding modified duty to accelerate workers’ return-to-work, to clamping down on workers’ comp fraud, prescription abuse and drug selling.

Tamara Ulufanua-Ciraulo, director of insurance, Stater Bros. Markets

Tamara Ulufanua-Ciraulo, director of insurance, Stater Bros. Markets

The results have been impressive, with a reduction in injuries and a drop in workers’ comp costs.

Unlike most grocers, Stater Bros. has four dedicated loss control professionals from The Hartford, its workers’ comp insurance provider. The consultants work onsite to aid the grocer’s team in controlling exposure, reducing losses, improving operations and resolving compliance issues. The Hartford group reports directly to Steve Toscano, Stater Bros.’ supervisor of support services.

“We all look at the claims we have, which gives us the ability to identify and systematically eliminate risks that come on our plate as soon as they are trending,” Toscano said. “That approach is what gives us the edge.”

For example, after analyzing knife cuts within the meat department, The Hartford group suggested that meat cutters wear wire mesh gloves, resulting in an immediate reduction in lacerations.

“We are the only grocer in California to have all of our meat cutters state-certified,” Ulufanua-Ciraulo said.

“We care about our brothers and sisters. We care about our team. Our great leader Jack H. Brown always tells us, ‘Do the right thing for the right reasons.’ And we do.” — Tamara Ulufanua-Ciraulo, director of insurance, Stater Bros. Markets

The grocer is particularly focused on teaching workers how to be more aware of safety, said Mark Ramer, safety supervisor for Stater Bros.’ distribution center. For example, the company developed a concise directive on how to best handle hazardous materials: “Double bag it. Label it. Tag it.”

Playing on the “industrial athlete” theme, Stater Bros. offers the ICE PACK Program. ICE PACK is a lengthy but fitting acronym for “Industrial athlete Care and Evaluation working towards Prevention, Aid, Consultation and Knowledge.” The grocer offers free first aid, advice, taping, wrapping, and icing for aches, pains and injuries to distribution and transportation employees four days a week, in excess of two hours per day, provided by physical therapists. It’s “like an athletic training room with preventive care,” Ulufanua-Ciraulo said.

Because of this program, along with other safety initiatives, injuries at the distribution center fell from 118 in 2012, to 68 in 2014. The ICE PACK program was added to the transportation department this April, and since that time, there have been zero recordable driver injuries.

Celebrating Safety

Incentive programs for safe practices are a big deal at Stater Bros. Its “Safety Recognition Program” offers an increasing number of incentives for every year a store has had zero recordable industrial injuries, with rewards such as catered employee appreciation parties, Stater Bros. gift cards, in-store drawings, and Stater Bros. apparel gift certificates. In 2015, 25 stores exceeded the two-year mark of zero recordable industrial injuries, and the number of stores that logged one year without any reportable workers’ compensation claims rose from 33 in 2014, to 53 in 2015.

Stater Bros.’ employees share their appreciation for the store’s safety leadership during a party celebrating two accident-free years at Store #139 in Murrieta, Calif.

Stater Bros.’ “Jump Start Program” targets stores that have difficulty controlling workers’ comp injuries. The company recognizes store employees with incremental rewards on a fast-paced scale to keep employees engaged and thinking about safety, and as a result, the number of injuries have declined.

There is also an incentive program for safe practices for distribution center workers. Employees who work without a reportable injury during each quarter are eligible for a drawing of Stater Bros. gift cards, and 10 percent of all eligible employees receive a gift card. In addition, every employee who completes one year without a workers’ comp injury receives a gift card.

The grocer has also expanded its comprehensive modified work program for the transportation and distribution centers, from five days to seven days, to better accommodate injured employees’ current work week schedules.

Advertisement




Employees are temporarily accommodated at retail locations based on their restrictions, and receive various types of scheduled training for the modified duty period, including training videos with testing and discussions that focus on body parts susceptable to injuries. In addition, third-party occupational therapists train and monitor the recovery progress of workers.

The expanded program complies with Stater Bros.’ collective bargaining agreement with the Teamsters Union, as workers have been able to maintain their regular rate of pay without moving to long-term status, Ulufanua-Ciraulo said.

“I’m sure our workers recognize how much the company is concerned about them personally and that we’re trying to ensure a smooth transition in their return-to-work, by allowing them to have a modified schedule for a period of time,” she said.

Tackling Abuse

The grocer is also particularly aggressive in its prescription monitoring, going above and beyond checking the state’s database system to make sure physicians are not over-prescribing medications to its workers. The company also conducts drug tests to determine whether workers are actually taking their drugs and not selling them, Ulufanua-Ciraulo said.

For example, if the grocer spends $4,000 a month in prescriptions for an individual worker who then tests “zero” because they are not taking their medications, Stater Bros. asks the treating physician to review the scripts.

The grocer has been able to overturn a “complex regional pain syndrome” claim because the doctor stated the employee could not do without the medications based on the diagnosis — even though the worker was actually not taking them.

Stater Bros. has implemented reviews for complex pharmacy claims to identify employees who may need an prescription drug intervention. It also uses “narcotics contracts” with employees to set expections for use of prescription medications.

Under the program, the grocer saw a reduction in prescription medication for “high utilizers” over a four-month period, resulting in savings of $100,000.

The company also closely monitors for workers’ comp fraud. The grocer learned about several Facebook and YouTube posts showing Shawna Palmer, a Stater Bros. employee who was off duty on a workers’ comp claim for an fractured toe, subsequently competing in local beauty pageants in high heels without any apparent discomfort.

Stater Bros. Markets’ Workers’ Compensation, General Liability & Safety Team

The grocer worked with its third-party administrator, Sedgwick Claims Management Services Inc., and the California Department of Insurance to collect more evidence of Palmer’s fraud, leading to her arrest last year.

In September, Palmer pleaded guilty to one misdemeanor count of workers’ comp fraud and was sentenced to 36 months’ probation, 50 hours of community service and ordered to pay a $1,000 fine and more than $5,000 restitution. The unusual story was picked up by news outlets nationally.

Because of its multi-faceted efforts, Stater Bros. has experienced a decline in workers’ comp claims frequency, Ulufanua-Ciraulo said. Workers’ comp claims decreased 12.5 percent from 2013 to 2014, on top of falling 7 percent from 2012 to 2013.

The grocer also has an extensive wellness program that includes an annual health and education fair to promote healthy and safe lifestyles, with onsite biometric screenings and ergonomic assessments of work stations. Stater Bros. was recognized as a 2015 Platinum Level recipient of the American Heart Association’s Fit-Friendly Worksite Award, for its commitment to providing physical activity and wellness opportunities to employees.

Toscano said that the grocer is successful because everyone works very closely to collaborate on risk management, safety and workers’ comp issues.

Advertisement




“I also credit the success of our programs to the leadership of our company and those individuals who have set such high standards in my current role,” he said.

“These individuals have encouraged our team to continue to improve programs to meet the needs of our employees.”

Ulufanua-Ciraulo said her team’s approach fits with the company’s culture, summed up nicely in a Stater Bros. TV commercial jingle used years ago:

“Up in the morning, stay late at night. … Hard work and value, that is the key.”

“That is who we are,” she said. “We care about our brothers and sisters. We care about our team. Our great leader Jack H. Brown always tells us, ‘Do the right thing for the right reasons.’ And we do.”

_______________________________________________________

Read more about all of the 2015 Teddy Award winners:

AA LAX TuesdayRevamped Program Takes Flight: The American Airlines and U.S. Airways merger meant integrating workers’ compensation programs for a massive workforce. The results are stellar.

 

112015_03_stater 150X150Checking Out Solutions: From celebrating safety success to aggressively rooting out fraud and abuse, Stater Bros. Markets is making workers’ comp risk management gains on multiple fronts.

 

112015_04_columbus 150X150Revitalizing the Program: In three years, the Columbus Consolidated Government was able to substantially reduce workers’ compensation claims costs, revamp return-to-work and enhance safety training.

 

112015_05_barnabas 150X150Spreading Success: Barnabas Health wins a Teddy Award for pushing one hospital’s success in workers’ comp systemwide.

 

Katie Kuehner-Hebert is a freelance writer based in California. She has more than two decades of journalism experience and expertise in financial writing. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

2018 Risk All Stars

Stop Mitigating Risk. Start Conquering It Like These 2018 Risk All Stars

The concept of risk mastery and ownership, as displayed by the 2018 Risk All Stars, includes not simply seeking to control outcomes but taking full responsibility for them.
By: | September 14, 2018 • 3 min read

People talk a lot about how risk managers can get a seat at the table. The discussion implies that the risk manager is an outsider, striving to get the ear or the attention of an insider, the CEO or CFO.

Advertisement




But there are risk managers who go about things in a different way. And the 2018 Risk All Stars are prime examples of that.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Goodyear’s Craig Melnick had only been with the global tire maker a few months when Hurricane Harvey dumped a record amount of rainfall on Houston.

Brilliant communication between Melnick and his new teammates gave him timely and valuable updates on the condition of manufacturing locations. Melnick remained in Akron, mastering the situation by moving inventory out of the storm’s path and making sure remediation crews were lined up ahead of time to give Goodyear its best leg up once the storm passed and the flood waters receded.

Goodyear’s resiliency in the face of the storm gave it credibility when it went to the insurance markets later that year for renewals. And here is where we hear a key phrase, produced by Kevin Garvey, one of Goodyear’s brokers at Aon.

“The markets always appreciate a risk manager who demonstrates ownership,” Garvey said, in what may be something of an understatement.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Dianne Howard, a 2018 Risk All Star and the director of benefits and risk management for the Palm Beach County School District, achieved ownership of $50 million in property storm exposures for the district.

With FEMA saying it wouldn’t pay again for district storm losses it had already paid for, Howard went to the London markets and was successful in getting coverage. She also hammered out a deal in London that would partially reimburse the district if it suffered a mass shooting and needed to demolish a building, like what happened at Sandy Hook in Connecticut.

2018 Risk All Star Jim Cunningham was well-versed enough to know what traditional risk management theories would say when hospitality workers were suffering too many kitchen cuts. “Put a cut-prevention plan in place,” is the traditional wisdom.

But Cunningham, the vice president of risk management for the gaming company Pinnacle Entertainment, wasn’t satisfied with what looked to him like a Band-Aid approach.

Advertisement




Instead, he used predictive analytics, depending on his own team to assemble company-specific data, to determine which safety measures should be used company wide. The result? Claims frequency at the company dropped 60 percent in the first year of his program.

Alumine Bellone, a 2018 Risk All Star and the vice president of risk management for Ardent Health Services, faced an overwhelming task: Create a uniform risk management program when her hospital group grew from 14 hospitals in three states to 31 hospitals in seven.

Bellone owned the situation by visiting each facility right before the acquisition and again right after, to make sure each caregiving population was ready to integrate into a standardized risk management system.

After consolidating insurance policies, Bellone achieved $893,000 in synergies.

In each of these cases, and in more on the following pages, we see examples of risk managers who weren’t just knocking on the door; they were owning the room. &

_________________________________________________________________

Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, clarity of vision and passion.

See the complete list of 2018 Risk All Stars.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]