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© 2002 Six Sigma Academy0 Define Point one Point two Point three Workman’s Compensation
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© 2002 Six Sigma Academy1 Define Point one Point two Point three Currently Worker’s Compensation Reserves are projected to be $2 Million for the Year 2000. Problem Statement Objective Reduce Worker’s Compensation Reserves Critical to Quality – CTQ Fast, appropriate medical treatment to affected employee Current/Goal/Stretch Goal 21.5DPMO – Current (Clinical visits) 23.2 DPMO - Current (Phy. Therapy) 247 DPMO – Current (L.T. Claims) 6.45 DPMO - Goal (Clinical visits) 6.96DPMO - Goal (Phy. Therapy) 74DPMO – Goal (L.T. Claims) 5.3DPMO – Final (Clinical Visits) 5.3DPMO – Final (Phy. Therapy) 102DPMO – Final (L.T. Claims) Benefits Achieved $712,000 Savings in Worker’s compensation reserves 75%, 77% and 59% improvement in DPMO respectively
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© 2002 Six Sigma Academy2 Define Point one Point two Point three Metrics Critical to Quality - CTQ Fast, appropriate medical treatment to affected employee DPMO – Clinical Visits DPMO – Physical Therapy DPMO – Lost Time Claims YearClaim Count Incurred 2000 191$ 470,195 1999 307$1,195,924 1998 276$ 782,013 1997 224$ 546,730 1996 145$ 123,416 1995 173 $ 253,066 Reported claims have been increasing at an average rate of 33 per year from 1995 through 1999.
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© 2002 Six Sigma Academy3 Define Point one Point two Point three Claim Procedure TPA’s Claim Procedure PROCESS MAPPING Reserve setting procedure identified as as one area for improvement
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© 2002 Six Sigma Academy4 Attribute Gage R & R Pass! MSA Measurement system passed with 90% score
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© 2002 Six Sigma Academy5 Cause & Effect Matrix Areas of Focus! C&E MATRIX Identified potential areas for improvement
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© 2002 Six Sigma Academy6 Lost Time Claims Clinical Visits Physical Therapy Visits Initial Capability Analysis BASELINE CAPABILITY
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© 2002 Six Sigma Academy7 Among Seats Built vs. Clinical Visits, PT Visits, Lost Days, & OSHA Recordable Injuries Correlation of Seats Built and Lost Time ClaimP-Value = 0.332 Correlation of Seats Built and Clinical VisitsP-Value = 0.125 Correlation of Seats Built and PT VisitsP-Value = 0.122 Correlation Studies No Statistical Significance! P-values all greater than 0.05 Correlation studies used to determine if linear relationships exist between factors (X’s) and response (Y)
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© 2002 Six Sigma Academy8 Multi-Vari for Total Injuries by: Shift - Day - Month Thursday’s and Friday’s had an increase in injuries! Multi-vari studies used to look for differences between factors (x’s) and response (Y)
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© 2002 Six Sigma Academy9 In-service was initiated to show supervisors the proper procedure on how to complete a supervisor’s report including an investigation report. Accommodating an employee’s restrictions. The number of loss time work days directly effects claim dollar amount. Employees referred to Barnes Care, by the nurse, must be approved by Human Resources. Case Management - Daily communication concerning cases, course of treatment, surveillance/investigation, and review of medical evidence to determine the validity of the claim among the Human Resources, Plant Nurse, Physicians, TPA, and Physical Therapy. Monthly meetings are scheduled to discuss and review open claims. Process Improvements
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© 2002 Six Sigma Academy10 Old Process New Process Main Effects for Clinical Visits by Month Two-sample T Month 1 N Mean A 8 82.9 B 6 44.0 Difference = mu (A) - mu (B) Estimate for difference: 38.9 T-Test of difference = 0 (vs not =): T-Value = 3.46 P-Value = 0.011 DF = 7 Ho = There is no difference between Aug-March & April-Sept Ha = There is a difference between Aug-March & April-Sept 2 Sample T-Test Clinical Visits REJECT Ho Hypothesis test shows statistically significant difference (improvement) between old and new process
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© 2002 Six Sigma Academy11 Old Process New Process Main Effects for Physical Therapy Visits by Month Two-sample T Month N Mean A 8 84.6 B 6 55.2 Difference = mu (A) - mu (B) Estimate for difference: 29.5 T-Test of difference = 0 (vs not =): T-Value = 2.13 P-Value = 0.047 DF = 11 Ho = There is no difference between Aug-March & April-Sept Ha = There is a difference between Aug-March & April-Sept 2 Sample T-Test Physical Therapy Visits REJECT Ho Hypothesis test shows statistically significant difference (improvement) between old and new process
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© 2002 Six Sigma Academy12 Control Plan put in place consisting of following: Nurse is responsible for case management, on-site care, scheduling therapy, advising and tracking restrictions, analyzing jobs, and meeting with the safety committees. Also, initiated internal care by treating minor injuries & illnesses resulting in a reduction of outside medical visits and costs. Set Permanent Partial Reserves at the mean percentage opposed to the maximum percentage. Worker’s Compensation Administrator reviews all reserves set for each reported claim. Monthly meetings are scheduled with our Worker’s Compensation Specialist & Worker’s Compensation Health Care Provider to discuss further tests, specialist referrals, and case closure of reported claims. An EDI Programming System has been installed to assist the nurse in submitting claims immediately, tracking injuries, review worker’s compensation claims, and increases efficiency and productivity. Carma System is being installed to allow access to all the information in the TPA’s system. Company will be able to view the reserves and adjustments made for each claim, and all claims an employee has or has had.
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