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Effectiveness of BWC’s SafetyGrant $ Program

Effectiveness of BWC’s SafetyGrant $ Program. July 1999 – June 2003 results. No claim required to complete an application until November 2001 Employers reported OSHA recordable information, turnover, and risk factor scores Ergonomic interventions only

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Effectiveness of BWC’s SafetyGrant $ Program

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  1. Effectiveness of BWC’sSafetyGrant$ Program

  2. July 1999 – June 2003 results • No claim required to complete an application until November 2001 • Employers reported OSHA recordable information, turnover, and risk factor scores • Ergonomic interventions only • Baseline data: one year for early recipients; two years for later recipients • Follow-up data: two years

  3. Effect of SafetyGrant$ interventions on risk factor scores N = 892 applications 41-percent improvement Time period:July 1999 – June 2003

  4. Effect of SafetyGrant$ interventions on CTD incidence rate N = 892 applications, Standardized per 100 full-time employees 14-percent improvement Time period:July 1999 – June 2003

  5. Effect of SafetyGrant$ interventions on lost days due to CTDs N = 892 applications, Standardized per 100 full-time employees 56-percent improvement Time period:July 1999 – June 2003

  6. Effect of SafetyGrant$ interventions on restricted days due to CTDs N = 892 applications, Standardized per 100 full-time employees 42-percent improvement Time period:July 1999 – June 2003

  7. Effect of SafetyGrant$ interventions on turnover N = 892 applications, Standardized per 100 full-time employees 62 percent of companies improved in turnover or stayed at 0 percent Time period:July 1999 – June 2003

  8. Cost benefit information (injury prevention) July 1999 – June 2003 • $37,012,176 was spent on the interventions (including the employer contribution). • The average amount spent was $41,493. • The most spent was $565,000. The least spent was $530. • 3,374 OSHA recordable injuries per year occurred in the baseline period (average 422 days baseline period). • 2,170 OSHA recordable injuries per year occurred in the follow-up period (two years) • Average workers’ comp claim cost for year 1999 = $10,610 (National Safety Council)

  9. Cost benefit calculation (injury prevention) • ROI (years) = $ spent / [average claim cost X (# claims in baseline per year - # claims in follow-up per year • ROI (years) = $ 37,012,176 / [$10,610 X [(3,901(365/409) – 4,340(365/730)] • ROI (years) = $37,012,176 / $13,913,238 per year • ROI = 2.7 years

  10. July 2003 – April 2009 results • A workers’ compensation claim was required to complete an application. • All types of safety interventions (no longer exclusively for ergonomics) • Baseline data: two years • Follow-up data: 584 days average • Some of the companies have not completed the program • Employers are required to report workers’ compensation claims related to the intervention. • Those employers that have not yet reported any follow-up data are not included in the results. • Data is from 419 applications reported through April 20, 2009.

  11. Effect of SafetyGrant$ interventions on incidence rate N = 419 applications Adjusted per 200,000 hours 56-percent improvement Time period:July 2003 – April 2009

  12. Cost benefit information (injury prevention) July 2003 – April 2009 • $16,460,656 was spent on the interventions (including the employer contribution). • The average amount spent was $39,285. • The most spent was $228,923. The least spent was $509. • 996 claims per year occurred in the baseline period (two-year reporting). • 451 claims per year occurred in the follow-up period (with the average reporting being 584 days).

  13. Cost benefit information (injury prevention) July 2003 – April 2009 • The medical costs for the two-year period before the intervention was $8,239,891. • The indemnity costs for the two-year period before the intervention was $6,283,845. • The total claims costs for the two-year period before the intervention was $14,523,736. • The medical costs for the 584-day follow-up period after the intervention was $1,551,875. • The indemnity costs for the 584-day follow-up period after the intervention was $878,938. • The total claims costs for the 584-day follow-up period after the intervention was $2,430,813.

  14. Cost benefit calculation (injury prevention) • ROI (years) = $ spent / (claims cost in baseline per year – claims cost in follow-up per year) • ROI (years) = $16,460,656 / [$14,523,736(365 days per year/730 reporting days) - $2,430,813(365 days per year/584 reporting days)] • ROI (years) = $16,460,656 / $ 5,742,609 per year • ROI = 2.9 years* * Does not include any future claims costs, so ROI should improve some over time

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