1. Page 1 Recording of this session via any media type is strictly prohibited. Page 1 Best Practices in Outcome-Based Workers’ Compensation Litigation Management

2. Page 2 Recording of this session via any media type is strictly prohibited. Janice Van Allen, Director of Workers’ Compensation, Walmart Stores, Inc. Responsible for aligning Walmart Stores’ core goal of Excellence within Workers’ Compensation to maintain a competitive advantage while ensuring Walmart injured associates receive the most effective medical care available following a work injury focused on recovery and return to gainful employment. Misty Price, Director of Analytics, Adelson, Testan, Brundo, Novell & Jimenez Responsible for planning, implementing and executing best-in-class methodologies to provide strategic litigation management and analytics within a national workers’ compensation defense law firm.

3. Page 3 Recording of this session via any media type is strictly prohibited. WHAT TO EXPECT After attending this session you should be able to: Recognize the challenges to achieving better outcomes based on new industry models for managing Workers’ Compensation litigation. Readily identify actionable information that can be used to create a framework to support outcome-based litigation management. Determine how you can begin to integrate strategy and analytics into managing Workers’ Compensation litigation.

4. Page 4 Recording of this session via any media type is strictly prohibited. If you go on doing what you have always done, You will go on getting what you have always got. ~ Tony Robbins

5. Page 5 Recording of this session via any media type is strictly prohibited. CLAIMS MANAGEMENT HIERARCHY

6. Page 6 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: OBSERVATIONS Adjuster and Attorney turnover is rampant Bureau of Labor Statistics: Average worker stays at their job 4.4 years, but the expected tenure of youngest employees is about half that. Future Workplace Multiple Generations @ Work: 91% of Millennials (born between 1977-1997) expect to stay in a job for fewer than three years. Jeanne Meister, Forbes: Job-hopping is the “new normal” for Millennials.

7. Page 7 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: OBSERVATIONS Litigated files are the most costly claims in the inventory, but most organizations manage them one file at a time at the adjuster level. Adjuster’s relationship with counsel drives most file assignments. The feedback loop for counsel to provide information and issues back to the client is often non-existent or rarely used, leading to missed opportunities.

8. Page 8 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: OBSERVATIONS Law firms not traditionally valued as business partners. Line attorneys generally do not understand the Risk Management world, so they do not recognize how they impact “program” results.

9. Page 9 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: OBSERVATIONS Different claim complexities may require different legal resources, strategies and management during the life of a claim. Opportunity Area Opportunity Area Opportunity Area

10. Page 10 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: OBSERVATIONS Multivariate analysis has not been leveraged in litigation as it often is in other areas of claims management. Understanding the vast number of untapped variables in your litigation data is the crux of outcome-based litigation management. (Examples: obesity/co-morbidities, large losses, claimant attorney.)

11. Page 11 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: THINK DIFFERENTLY By setting a strategy and managing your litigated cases at a program level: Your program is not dependent on individual performers Resource management and allocation is more effective Opportunities and trends can be identified more readily and addressed

12. Page 12 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: THINK DIFFERENTLY Step One: Creating a framework that supports outcome-based litigation management. Take ownership of the evaluation, selection and consolidation of law firm partners.

13. Page 13 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: THINK DIFFERENTLY “What gets measured, gets done!” - Karen Stankevitz, Director of Consulting To effectively incorporate metrics and dashboard reporting there must be a methodology to consolidate and transfer files. Consolidating legal cases to a limited number of firms and focusing on closures has resulted in reduced expenses and has led to reduced actuarial projections.

14. Page 14 Recording of this session via any media type is strictly prohibited. ACTIONABLE INFORMATION Enhanced litigation metrics: Typical: Fees, Duration, Closures Managing for Outcomes: Litigation Stages, Types of Closures Closures: Date Tracking – Staggered reporting dates o To Litigation (Law Firm) o To Claims (TPA) Types o Full and Final o Open Medical

15. Page 15 Recording of this session via any media type is strictly prohibited. BEYOND TASK MANAGEMENT Staging the pipeline of litigated cases helps you assess and better monitor claims and ultimately the overall book. Discovery Negotiations Pending Settlements Settlements

16. Page 16 Recording of this session via any media type is strictly prohibited. BEYOND TASK MANAGEMENT Discovery Negotiations Pending Settlements Settlements Superimposing matter stage upon matter age and the size/complexity of the file, will enable you to identify opportunities to allocate resources strategically to drive better outcomes.

17. Page 17 Recording of this session via any media type is strictly prohibited. VARIABLES FOR PROGRAM STRATEGIES Other Actionable Information: Venue Projected Closure Date Authority Requests/Grants Morphine Equivalent/Opiates MSA

18. Page 18 Recording of this session via any media type is strictly prohibited. COMPLEX LOSSES: SOPHISTICATED STRATEGIES All claims are not equal; impact expected trajectories through stratifying your losses: Use resources more strategically Provide better direction to the attorneys to allow them to prioritize their caseload

19. Page 19 Recording of this session via any media type is strictly prohibited. SAMPLE STRATIFICATION Total Incurred Stratification

20. Page 20 Recording of this session via any media type is strictly prohibited. CLAIM CLOSURE PROJECTS Closure rates become more meaningful when evaluated by financial stratifications. For relief carried forward actuaries will want to see that you apply lessons learned from the project to future process. When beginning a closure initiative be sure to identify a baseline rate and type of closures.

21. Page 21 Recording of this session via any media type is strictly prohibited. APPROACH TO LEVERAGING ANALYTICS Today’s challenging environment heightens the importance of embracing technological advances which will enable us to maintain a competitive edge while ensuring our injured associates receive the most effective medical care following an injury. The new age of analytics has led to the development of a variety of solutions. Leveraging claims-related data enables claims handling resources to take preventative and strategic actions earlier in the life cycle of a claim.

22. Page 22 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: APPROACH Set the strategy – define success Litigation Avoidance o Success is looking after the interests of associates as the best method to manage the threat of litigation. Litigated Claims o Success is avoiding an adversarial relationship with associates (when possible), ensuring timely resolution of litigated matters. Optimal resolution minimizes future exposure through full and final settlements (when available and appropriate). Understand the Jurisdiction – Resolution Options How to navigate to the best obtainable outcome

23. Page 23 Recording of this session via any media type is strictly prohibited. UNDERSTANDING LAW FIRMS Firm and Attorney Revenue = hour x rate Billing bonuses Caseload Ancillary resources

24. Page 24 Recording of this session via any media type is strictly prohibited. COMMUNICATION Establish your Attorney Panel Point of Contact Partner v. Vendor Firm v. Attorney One Team Approach Create common vision/common strategy – YOUR strategy Encourage use of firm resources o Does size matter?

25. Page 25 Recording of this session via any media type is strictly prohibited. LITIGATION MANAGEMENT: METRICS Enhanced Outside Counsel Reporting Properly align metrics to program goals Employer-driven information collection establishes a context for identifying and validating impediments Friendly competition will help drive results Understand the limitations of collection and reporting of data

26. Page 26 Recording of this session via any media type is strictly prohibited. LITIGATION METRICS Evaluate data in a consistent manner. By Jurisdiction Across Firms/Attorneys Key Measurements: Pending and New Actual and Average Financials Closing Ratio/Turnover Rates Ratio of Full and Final Closures Establish Monthly Metrics

27. Page 27 Recording of this session via any media type is strictly prohibited. QUESTIONS, FINAL COMMENTS AND CONTACT INFORMATION Janice Van Allen Director of Workers’ Compensation Walmart Stores, Inc. Janice.van_allen@walmart.com Misty Price Director of Analytics Adelson, Testan, Brundo, Novell & Jimenez MistyPrice@atblaw.net