ADR Programs, Accurate Class Codes, and Proactive Solutions for Health Facilities
Healthcare organizations contend with high injury rates, complex claims, and rising medical inflation, making workers’ compensation coverage a significant cost driver. 7 out of 10 businesses never audit their workers’ comp program independently (Institute of WorkComp Professionals), which can lead to missed savings—especially for facilities handling critical patient care.
ADR & Medical Inflation
“Standard workers’ comp plans often fail to address the full complexity of healthcare risks,” says Kirk Aguilera, National Workers’ Comp Practice Leader. “ADR (Alternative Dispute Resolution) can resolve up to 90% of claims before they escalate to litigation, reducing both time and legal costs.”
Medical Inflation Note: According to recent BLS data, compensation costs for civilian workers rose by 4.2% between March 2023 and March 2024. When healthcare service costs surge, claim expenses and premiums often follow suit—highlighting the urgency to adjust your workers’ comp plan.
Success Story: 25% Lower Premiums
A mid-sized healthcare clinic lowered premiums by 25% (NCCI average) after adopting targeted risk management strategies. By revisiting class codes, adding an ADR clause, and budgeting for higher medical expenses, they stabilized their workers’ comp rates and improved employee satisfaction.
Actionable Steps
- Review & Update Class Codes: Healthcare roles evolve rapidly; misclassifications can inflate costs.
- Implement ADR Programs: Early claim resolution avoids lengthy litigation.
- Account for Medical Inflation: Build projected cost increases into your plan.
Recommended Resources
Is Your Healthcare Facility Paying Too Much? As medical inflation and complex risks grow, your organization can’t afford outdated coverage.
- Take Our Quick Quiz to gauge your readiness.
- Once you submit, we’ll book a no-obligation 20-minute consultation with Kirk. Together, we’ll explore tailored solutions—be it ADR integration, class code updates, or a retrospective rating plan—to help your facility balance patient care with financial stability.
