Aon Risk Solutions has released its second Health Care Workers Compensation Barometer report. The report explores trends in frequency, severity and overall loss rates related to workers’ compensation for approximately 1,150 heath care facilities across the country. The 2014 report projects workers compensation loss rates will decrease one percent annually. The Health Care Workers Compensation Barometer report also shows that frequency of workers compensation claims has been slowly and consistently decreasing at the same one percent level over the ten year experience period analyzed.

Conversely, workers compensation claim severity within the health care industry has been slowly increasing at a rate of two percent per year over the same ten year period. The report also analyzes survey data highlighting the specific concerns and issues that the health care industry currently faces. Patient management, including handling and lifting, has been identified as the number one concern by risk managers as it accounts for one third of all claims and has the highest average indemnity payment out of all causes of loss.

“Patient handling is clearly a leading concern in the health care industry; however, risks associated with emerging outbreaks, like Ebola, are driving new conversations in the boardroom,” said Barry Weiner, managing director and National Senior Care Practice leader. “Risks, such as materials handling, used to be a small average indemnity paid relative to other causes of loss but the frequency of these types of claims appears to be on the rise.”

Other noteworthy key findings from Aon’s report include:

• 90 percent of survey respondents have a return to work program but only 65 percent have metrics in place to test the effectiveness of the program.
• 95 percent of survey respondents have a formal safety committee. 17 percent of survey respondents have a safety incentive program in place.
• For the 2015 accident year, Aon projects that health care facilities will experience an annual loss rate of $0.75 per $100 of payroll. This projection applies at the countrywide level and is made assuming a $500,000 per occurrence limit.
• Home Health Care Aide, as an occupation, has the highest average indemnity cost among workers compensation claims. This is potentially due to patient management.
• Among the eleven states profiled within the report, California ($2.18) has the highest projected loss rate for 2015; Tennessee ($0.48) has the lowest projected loss rate for 2015.

In addition to survey data, the 2014 report examines other workers compensation trends in the health care industry, including:

Claim frequency and severity by department and occupation – For the first time, the report analyzes the department and occupation fields within claim data to measure the relative frequency and severity of claims by department and occupation, separately.

Historical trends by certain states – The barometer report provides statistical information on historical frequency, severity, and overall loss rates specific to 11 states.

Weiner added, “This report will continue to be a critical tool for organizations looking to measure and promote patient and employee safety. It helps health care leaders and risk managers to measure, maintain and reduce their workers’ compensation exposures against their industry and identify certain key areas for improvement and growth.”