2016 Teddy Awards: Honorable Mention

Saving Time and Money

Applying Lean Six Sigma to its workers' comp processes earned Atlantic Health an Honorable Mention Teddy Award.
By: | November 2, 2016 • 3 min read

Putting together a Lean Six Sigma Project at Atlantic Health System made all the difference to its workers’ compensation results.

A retrospective review in 2014 of 2013 work injuries revealed that back and shoulder injuries were the most frequent and had the highest costs, said Linda Reiher, manager of occupational medicine service, at the organization that has five hospitals and nearly 16,000 employees in New Jersey.

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The average days out of work for these types of injuries was 41 days in 2013, she said. “Having an employee out of work costs AHS money.”

After analyzing the data, Atlantic Health realized that there were delays in various steps in their workers’ compensation process.

“From reviewing our data, I noticed obtaining imaging and specialist appointments were responsible for some of these delays,” she said.

To provide more focused care, the nonprofit organization hired Donna Brucker, a registered nurse, to fill the newly created position of RN workers’ compensation case manager. In the past, nurse practitioners did most of the case management for workers’ comp cases, but they had a great many other responsibilities as well, thus leaving little time for effective case management, Reiher said.

“Although case management was important, things were not operating as efficiently as they should ,” Reiher said.

The Atlantic Lean Team: left to right, bottom row: Margaret Skurka, Linda Reiher. Top row: Beth Del Pino, Laureen O'Rourke, Joanne Brubaker, Rachel Leibu, Donna Naturale, Donna Brucker

The Atlantic Lean Team: left to right, bottom row: Margaret Skurka, Linda Reiher. Top row: Beth Del Pino, Laureen O’Rourke, Joanne Brubaker, Rachel Leibu, Donna Naturale, Donna Brucker

That has changed with the addition of Brucker, as well as Laureen O’Rourke as the coordinator who is responsible for assisting with the management of some of the sites, she said.

“Case management is Donna Brucker’s primary focus and both nurses are vigilant about shepherding the patient throughout the recovery process,” Reiher said.

“The Lean Project’s initial goal was to reduce out-of-work days [lost time] from 41 days to 35 days,” she said. “We were able to reduce our out-of-work days from our goal of 35 days to just 9 days, an 80 percent decrease.”

Atlantic Health System also saw a 70 percent reduction in the amount of time it took to schedule appointments to see a specialist, and a significant reduction in time from injury date to the first Occupational Medicine Service (OMS) appointment. This metric was reduced from eight days to 1.4 days.

The Lean project pilot had an estimated savings of more than $900,000 in workers’ compensation costs.

“The Lean project was a big success,” Reiher said, noting that it earned an Organizational Effectiveness President’s Award from Atlantic Health System.

“The most important thing,” said Dr. Rachel Leibu, medical director, OMS, “is we maintained continuity of patient care and we were able to effectively manage workers’ compensation injuries, minimize costs and provide excellent care to employees.”

“The Lean Project’s initial goal was to reduce out-of-work days [lost time] from 41 days to 35 days. We were able to reduce our out-of-work days from our goal of 35 days to just 9 days, an 80 percent decrease.” — Linda Reiher, manager, occupational medicine service, Atlantic Health System

To help protect the health of its patients and employees, OMS instituted a mandatory vaccination program in 2013 to protect against influenza and pertussis. They also more recently introduced iPad technology to help control costs related to its mandatory flu vaccine campaign. The new system better tracks compliance with the initiative by reducing the number of illegibly signed paper consent forms and potentially misplaced lost paperwork, as well as decreasing data entry and electronic medical record scanning time.

An electronic Flu Dashboard assists management with tracking employee vaccination status. The dashboard also provides for efficient identification of employees who were granted vaccine exemptions for medical or religious reasons, Leibu said. Exempt employees who are not vaccinated must wear masks when entering an AHS clinical facility when a threshold level of activity exists in the community.

Technology has also aided Atlantic Health in tracking injuries that are trending upward, so that safety initiatives can be instituted when a hazard is revealed, she said.

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For example, dim lighting and multiple electric cords in operating rooms were causing tripping hazards. A process to bundle the device cords together while increasing education about the hazard reduced incidents, Leibu said.

Atlantic Health also began mandatory classes for nurses and other employees to help protect them from workplace violence, which is a national safety hazard in the health care field. The classes include education on how to diffuse situations when visitors or patients act out as well as self-defense methods.

For its success in enhancing its workers’ compensation processes, Atlantic Health System was awarded a 2016 Teddy Award Honorable Mention. &

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Read more about the 2016 Teddy Award winners:

target-150x150Bringing Focus to Broad Challenges: Target brings home a 2016 Teddy Award for serving as an advocate for its workers, pre- and post-injury, across each of its many operations.

 

hrt-150x150The Road to Success: Accountability and collaboration turned Hampton Roads Transit’s legacy workers’ compensation program into a triumph.

 

excela-150x150Improve the Well-Being of Every Life: Excela Health changed the way it treated injuries and took a proactive approach to safety, drastically reducing workers’ comp claims and costs.

 

harder-150x150The Family That’s Safe Together: An unwavering commitment to zero lost time is just one way that Harder Mechanical Contractors protects the lives and livelihoods of its workers.

 

More coverage of the 2016 Teddy Awards:

Recognizing Excellence: The judges of the 2016 Teddy Awards reflect on what they learned, and on the value of awards programs in the workers’ comp space.

Fit for Duty: 2013 Teddy Winner Miami-Dade County Public Schools is managing comorbid risk factors by getting employees excited about healthy living.

Saving Time and Money: Applying Lean Six Sigma to its workers’ comp processes earned Atlantic Health a Teddy Award Honorable Mention.

Caring for the Caregivers: Adventist Health Central Valley Network is achieving stellar results by targeting its toughest challenges.

Advocating for Injured Workers: By helping employees navigate through the workers’ comp system, Cottage Health decreased lost work days by 80 percent.

A Matter of Trust: St. Luke’s workers’ comp program is built upon relationships and a commitment to care for those who care for patients.

Keeping the Results Flowing: R&I recognizes the Metropolitan Water Reclamation District of Greater Chicago for a commonsense approach that’s netting continuous improvement.

Anne Freedman is managing editor of Risk & Insurance. She can be reached at afreedman@lrp.com.

Insurtech

Kiss Your Annual Renewal Goodbye; On-Demand Insurance Challenges the Traditional Policy

Gig workers' unique insurance needs drive delivery of on-demand coverage.
By: | September 14, 2018 • 6 min read

The gig economy is growing. Nearly six million Americans, or 3.8 percent of the U.S. workforce, now have “contingent” work arrangements, with a further 10.6 million in categories such as independent contractors, on-call workers or temporary help agency staff and for-contract firms, often with well-known names such as Uber, Lyft and Airbnb.

Scott Walchek, founding chairman and CEO, Trōv

The number of Americans owning a drone is also increasing — one recent survey suggested as much as one in 12 of the population — sparking vigorous debate on how regulation should apply to where and when the devices operate.

Add to this other 21st century societal changes, such as consumers’ appetite for other electronic gadgets and the advent of autonomous vehicles. It’s clear that the cover offered by the annually renewable traditional insurance policy is often not fit for purpose. Helped by the sophistication of insurance technology, the response has been an expanding range of ‘on-demand’ covers.

The term ‘on-demand’ is open to various interpretations. For Scott Walchek, founding chairman and CEO of pioneering on-demand insurance platform Trōv, it’s about “giving people agency over the items they own and enabling them to turn on insurance cover whenever they want for whatever they want — often for just a single item.”

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“On-demand represents a whole new behavior and attitude towards insurance, which for years has very much been a case of ‘get it and forget it,’ ” said Walchek.

Trōv’s mobile app enables users to insure just a single item, such as a laptop, whenever they wish and to also select the period of cover required. When ready to buy insurance, they then snap a picture of the sales receipt or product code of the item they want covered.

Welcoming Trōv: A New On-Demand Arrival

While Walchek, who set up Trōv in 2012, stressed it’s a technology company and not an insurance company, it has attracted industry giants such as AXA and Munich Re as partners. Trōv began the U.S. roll-out of its on-demand personal property products this summer by launching in Arizona, having already established itself in Australia and the United Kingdom.

“Australia and the UK were great testing grounds, thanks to their single regulatory authorities,” said Walchek. “Trōv is already approved in 45 states, and we expect to complete the process in all by November.

“On-demand products have a particular appeal to millennials who love the idea of having control via their smart devices and have embraced the concept of an unbundling of experiences: 75 percent of our users are in the 18 to 35 age group.” – Scott Walchek, founding chairman and CEO, Trōv

“On-demand products have a particular appeal to millennials who love the idea of having control via their smart devices and have embraced the concept of an unbundling of experiences: 75 percent of our users are in the 18 to 35 age group,” he added.

“But a mass of tectonic societal shifts is also impacting older generations — on-demand cover fits the new ways in which they work, particularly the ‘untethered’ who aren’t always in the same workplace or using the same device. So we see on-demand going into societal lifestyle changes.”

Wooing Baby Boomers

In addition to its backing for Trōv, across the Atlantic, AXA has partnered with Insurtech start-up By Miles, launching a pay-as-you-go car insurance policy in the UK. The product is promoted as low-cost car insurance for drivers who travel no more than 140 miles per week, or 7,000 miles annually.

“Due to the growing need for these products, companies such as Marmalade — cover for learner drivers — and Cuvva — cover for part-time drivers — have also increased in popularity, and we expect to see more enter the market in the near future,” said AXA UK’s head of telematics, Katy Simpson.

Simpson confirmed that the new products’ initial appeal is to younger motorists, who are more regular users of new technology, while older drivers are warier about sharing too much personal information. However, she expects this to change as on-demand products become more prevalent.

“Looking at mileage-based insurance, such as By Miles specifically, it’s actually older generations who are most likely to save money, as the use of their vehicles tends to decline. Our job is therefore to not only create more customer-centric products but also highlight their benefits to everyone.”

Another Insurtech ready to partner with long-established names is New York-based Slice Labs, which in the UK is working with Legal & General to enter the homeshare insurance market, recently announcing that XL Catlin will use its insurance cloud services platform to create the world’s first on-demand cyber insurance solution.

“For our cyber product, we were looking for a partner on the fintech side, which dovetailed perfectly with what Slice was trying to do,” said John Coletti, head of XL Catlin’s cyber insurance team.

“The premise of selling cyber insurance to small businesses needs a platform such as that provided by Slice — we can get to customers in a discrete, seamless manner, and the partnership offers potential to open up other products.”

Slice Labs’ CEO Tim Attia added: “You can roll up on-demand cover in many different areas, ranging from contract workers to vacation rentals.

“The next leap forward will be provided by the new economy, which will create a range of new risks for on-demand insurance to respond to. McKinsey forecasts that by 2025, ecosystems will account for 30 percent of global premium revenue.

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“When you’re a start-up, you can innovate and question long-held assumptions, but you don’t have the scale that an insurer can provide,” said Attia. “Our platform works well in getting new products out to the market and is scalable.”

Slice Labs is now reviewing the emerging markets, which aren’t hampered by “old, outdated infrastructures,” and plans to test the water via a hackathon in southeast Asia.

Collaboration Vs Competition

Insurtech-insurer collaborations suggest that the industry noted the banking sector’s experience, which names the tech disruptors before deciding partnerships, made greater sense commercially.

“It’s an interesting correlation,” said Slice’s managing director for marketing, Emily Kosick.

“I believe the trend worth calling out is that the window for insurers to innovate is much shorter, thanks to the banking sector’s efforts to offer omni-channel banking, incorporating mobile devices and, more recently, intelligent assistants like Alexa for personal banking.

“Banks have bought into the value of these technology partnerships but had the benefit of consumer expectations changing slowly with them. This compares to insurers who are in an ever-increasing on-demand world where the risk is high for laggards to be left behind.”

As with fintechs in banking, Insurtechs initially focused on the retail segment, with 75 percent of business in personal lines and the remainder in the commercial segment.

“Banks have bought into the value of these technology partnerships but had the benefit of consumer expectations changing slowly with them. This compares to insurers who are in an ever-increasing on-demand world where the risk is high for laggards to be left behind.” — Emily Kosick, managing director, marketing, Slice

Those proportions may be set to change, with innovations such as digital commercial insurance brokerage Embroker’s recent launch of the first digital D&O liability insurance policy, designed for venture capital-backed tech start-ups and reinsured by Munich Re.

Embroker said coverage that formerly took weeks to obtain is now available instantly.

“We focus on three main issues in developing new digital business — what is the customer’s pain point, what is the expense ratio and does it lend itself to algorithmic underwriting?” said CEO Matt Miller. “Workers’ compensation is another obvious class of insurance that can benefit from this approach.”

Jason Griswold, co-founder and chief operating officer of Insurtech REIN, highlighted further opportunities: “I’d add a third category to personal and business lines and that’s business-to-business-to-consumer. It’s there we see the biggest opportunities for partnering with major ecosystems generating large numbers of insureds and also big volumes of data.”

For now, insurers are accommodating Insurtech disruption. Will that change?

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“Insurtechs have focused on products that regulators can understand easily and for which there is clear existing legislation, with consumer protection and insurer solvency the two issues of paramount importance,” noted Shawn Hanson, litigation partner at law firm Akin Gump.

“In time, we could see the disruptors partner with reinsurers rather than primary carriers. Another possibility is the likes of Amazon, Alphabet, Facebook and Apple, with their massive balance sheets, deciding to link up with a reinsurer,” he said.

“You can imagine one of them finding a good Insurtech and buying it, much as Amazon’s purchase of Whole Foods gave it entry into the retail sector.” &

Graham Buck is a UK-based writer and has contributed to Risk & Insurance® since 1998. He can be reached at riskletters.com.