1) Utilization review - Utilization review attempts to assure that the necessary treatments are provided and done so for the appropriate duration. (The type of intervention and the number of treatments) With home modifications, utilization review correlates with the assurance of an appropriate scope of work. Or better stated, assuring the necessary modifications for current and/or future status.

2) Regulating Cost - Although workers compensations can regulate prices for medical test, treatments, pharmaceuticals etc...it does not have the same infrastructure to regulate construction costs. However there are simple systems that can be put in place that can help manage the cost of construction. For starters, you can require your contractors to use a nationally recognized estimating system. These systems have built in pricing databases that are updated quarterly on a regional basis. As long as the contractors do not deviate from the database, you can rest assured that the pricing is considered reasonable and customary.

3) Timely Response - The quicker you can get someone rehabilitated or retrained in a parallel vocation, and back to work, the less your cost. The same goes for home modifications. The quicker the hammer hits the nail the less time the insured waits in a costly rehab facility. The sooner you can get the contractor involved the better. Don’t wait until you are ready to discharge to make the call. It is also helpful to remember that construction costs don’t generally go down. If you can get the work completed now rather than 6 months from now, you’ll be surprised at how much can be saved.

Take a few moments and think about it, it all adds up.

Cost containment = Utilization review + Regulated Pricing + Timely Response

(Accurate Scope) (Fair Price) (Field Practice Guidelines)

Let me know how you’re doing!

Corey Staver

The David Corey Company

coreys@davidcoreycompany.com