Aon Global Risk Consulting has released its biennial health care workers' compensation barometer report, which found that, for the 2017 accident year, health care systems will face a complex environment of emerging risks that will have a direct impact on workers' compensation.

The report, which analyzed data from approximately 1,600 heath care facilities across the country, found that while the severity of workers' compensation claims has been increasing at a rate of two percent annually, the frequency of claims is expected to decrease one percent annually. The report also found that the industry should see loss rates increase by a projected one percent.

“As has been the case historically, the health care industry has experienced little volatility in workers' compensation loss rates and, to augment that, claims frequency continues on a slow and steady decline,” said Martha Bronson, the associate director and actuary for Aon risk solutions. “However, an aging workforce, safe patient handling issues, and workplace violence are all emerging risks that need to be top of mind for the industry.”

Aon's report found that workers' compensation claim costs increase as health care workers age, with the majority of those claims resulting from injuries to the back and shoulders. Fifty three percent of working nurses – a demographic that is the most frequently injured – are over the age of 50. A likely consideration for controlling these types of claims in the future and helping to ensure a healthy and safe workforce is education, specifically mentoring of the younger nursing population. Although the report found that 58 percent of respondents have a program that develops younger workers, 61 percent do not have policies or programs that help transition older workers to a different work setting.

An alarming number of survey respondents – 91 percent – have experienced workplace violence in the past three years. However, approximately half of respondents indicated they are prepared for such an incident, with another 27 percent being very prepared. Eighty-one percent of respondents have a formal workplace violence prevention policy in place.

Dominic Colaizzo, chairman and U.S. health care practice leader for Aon risk solutions added, “While we recognize these emerging risks that are facing our industry in the year ahead, we also see that health care systems are ahead of the game. They are adhering to standards and utilizing best practices that are no doubt having a direct, positive effect on the number of workers' compensation claims.”

Aon's report also provided statistical information on historical frequency, severity, and overall loss rates specific to 11 states. Notably, the report found that loss rates in California are almost double the countrywide rate and that claims severity is nearly three times that of the countrywide average of $23,950.

“Health care is a fast-growing sector right now, and workers in this industry face a myriad of hazards on the job,” said Virginia Jones, senior consultant and actuary at Aon risk solutions. “These findings should be a benchmark for risk managers, helping them realize three distinct benefits to a strategic risk management program: they can measure their workers' compensation exposure against their peers, maintain standards of practice and safety levels, and reduce the overall cost of risk.”

Victoria Spears

Victoria Spears

Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].

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