PowerPoint Presentation by bb3r98Ga

VIEWS: 5 PAGES: 22

									  Concord Hospitality Enterprises
  Workers Compensation Program:
   Analysis and Risk Management
              Controls

Lisa Spacht, Wells Fargo Insurance Services
Total Number of Claims

300


250


200


150


100


 50


 0
      2007   2008    2009             2010         2011 YTD
                         *As of 4/07/2012 - (Policy Year 11/1/2011-10/31/12)
Total Incurred (Medical Payments and Indemnity Payments)

$1,000,000
  $900,000
  $800,000
  $700,000
  $600,000
  $500,000
  $400,000
  $300,000
  $200,000
  $100,000
       $0
              2007       2008       2009      2010     2011 YTD
                                                           *As of 4/07/2012
Associate Accidents Loss Rate Per $100 payroll
                                            (WC loss costs $)
         1.8
         1.6
         1.4
         1.2
           1
         0.8
         0.6
         0.4
         0.2
           0
                     2007              2008             2009    2010   2011 YTD

*As of 1st Quarter 2011-2012 policy year (11/1/11-10/31/12)
WC Loss Rate per $100 Payroll by Region


                                              2011 YTD
     8
     7
     6
     5
     4
     3
     2
     1
     0
             Burch       Elofson         Gant          Polo   Hiller   Lockard   Roberts

*As of 1st Quarter 2011-2012 policy year (11/1/11-10/31/12)
Housekeeping Workers’ Comp Trends


Good News: $157,000 YTD (5 months) total
 Housekeeping Workers’ Compensation vs.
 $498,000 total for 2010-2011 policy year.

Bad News: $146,000 YTD (5 months) slip, trip, fall
  and sprain/strain cost vs. $330,000 in 2010-2011
  policy year.
See Scorecard results for Housekeeping safety observations.
Control of Workers’ Comp Claims Costs $$

 Pre-Loss: Prevent and don’t incur the accident
    Safety Scorecard Initiative
        • Commenced 1st Quarter 2012
        • Focuses on behaviors and conditions we believe are most
          proximate to the accident
        • Hotel Safety Committees critical in surfacing cause trends


 Post-Loss: Address Severity
    – Prompt Reporting
    – Network Utilization
    – Return to Work
Accident Prevention: Pre-Loss Initiatives

Safety Scorecard Program
   – Accident Causes by occupation focused
   – Conducted by the safety committee
   – Completed quarterly by regions
   – Looking to identify safe and unsafe behaviors
     and conditions
      • Goal: 100% safe should equal less accidents and less
        accident costs
   – Does not supersede other internal audits (i.e.
     corporate safety security audit)
Sample Scorecard - Kitchen
Scorecard Results for First Quarter



          DEPARTMENT         SAFE     UNSAFE
Housekeeping                84.32%    15.68%
Laundry                     88.48%    11.52%
Engineering                 95.58%    4.42%
Kitchen                     93.62%    6.38%


Total for All Departments   87.27%    12.73%
Leading unsafe behaviors by department…

                  CODE              SAFE    UNSAFE

HK 15 - Use of knee pads           25.00%   75.00%
HK 12 – Use of gloves              55.81%   44.19%
HK 25 - Check In Before You
                                   72.73%   27.27%
         Check Out


LD 5 – Sheets folded by hand       63.64%   36.36%
LD 12 – Anti-fatigue mats          66.67%   33.33%
LD 3 - No linens/towels on floor   69.23%   30.77%
LD 13 – Linens stored above
                                   69.23%   30.77%
        shoulder height
Leading unsafe behaviors by department…

                     CODE                 SAFE    UNSAFE

ENG 4 – Two engineers for roof access    83.33%   16.67%
ENG 5 – Ladder Use                       86.67%   13.33%
ENG 7 – PTAC transport and cleaning      87.50%   12.5%


KIT 11 – Knives washed separately        83.33%   16.67%
KIT 12 – Check In Before You Check Out   83.33%   16.67%
KIT 6 – Use of walk off mats             90.91%   9.09%
KIT 9 – Cut proof gloves being used      90.91%   9.09%
Scorecard Results vs. Accident Trends

 19 out of 22 housekeeping behaviors related to strains/sprains
  and slips and falls were less than 90% safe.

 3 out of 7 laundry behaviors related to strains/sprains were
  less than 90% safe

 5 out of 9 kitchen behaviors related to strains/sprains were
  less than 90% safe
   – Unsafe behaviors and conditions lead to Accidents

 There was a correlation between hotels with historically high
  claims frequency and scorecard results.
Post Loss Claims Control

Mitigate Claims Severity through:
   Prompt Reporting
      • Same day


   Network Use
      • Panel doctors and medical facilities as provided by
        Firemen’s Fund


   Return to Work
      • Working within restrictions set by physicians
Lag-Time by Policy Year

 90%

 80%

 70%

 60%

 50%

 40%

 30%

 20%

 10%

  0%
       2007    2008       2009   2010   2011 YTD
                                              As of 4/07/2012
Prompt Reporting Results

Reporting Dividend
  – 80-90% = 4% of total WC premium
  – > 90% = 9% of total WC premium

  Average Costs per claim 2011-ytd (11/1/2011-10/31/2012)
     • ≤ 3 days = $1,808
     • > 3 days = $4,519


     *Check In Before You Check Out!
Post Loss Claim Management

                                                                         # of
                        % Total                  % of claims
          % Claims                                                     claims >
 Year                   Claims in    Year         with TTD
          First Visit                                                  30 days
                        Network                  Payments
                                                                          TTD

2009          70           53       2009                9.43             12

2010          69           63       2010                7.97             14

2011          59           54       2011                8.89              8

3 years       68           58       3 years             8.67              34

                                    TTD = Temporary Total Disability
Post Loss Claim Management

Return to Work Program (RTW)
 Purpose
 Transport
 Communication with Associate
 Light Duty Jobs
 Packet to Associate
 Return to Full Duty - Communication between GM and Claims
  Adjuster
 Medical Treatment
Workers’ Comp Cost Control Summary and Take Aways



 Keep addressing claim frequency occurrence via continual improvements and
    best practices as identified in the safety observation scorecards.
     – Focus on loss trend behaviors
     – Ensure management, training and other physical controls are
        systematically implemented to make improvements

 Follow Concord’s New WC policy in order to positively affect the loss cost per
     100 results.
      – Increase network use to 80% for first paid bills
      – Communication with claims department to use RTW
      – Check in before you check out policy 100%
Cornerstone Awards
Cornerstone Awards – Hotels with
     ZERO accidents in 2011

                    Courtyard Willoughby – Chris Cornett
                    MainStay Brentwood – Nick Clifton
                    Courtyard Springfield – Becky Krieger
                    Fairfield Inn Butler – Katie Zupsic
                    Courtyard Newark – Thomas Mate
                    Residence Inn The Colony – John Henry
                    Residence Inn Mississauga – Vali Glover
                    Residence Inn Vaughan – Anita Shu
                    Courtyard Vaughan – Kenneth Dunkley
                    Courtyard Airport Mississauga – Lisa Tracz
                    Courtyard Hamilton Ontario – Andrew Holmes

								
To top