Traditionally
in Workers’ Comp, nurse case management (NCM) services have been widely
espoused, yet often misunderstood and underutilized. The reasons for
underutilization are many, including claim ownership tension between NCM’s and
claims adjusters. More significantly, is NCM difficulty in defining its work
and measuring its value. The issue is not lost on the nurses themselves.
Last to computerize
Medical
case management is last and least to computerize. NCM typically cannot attract
adequate funding to create appropriate systems. When a process is poorly
understood, designing a proper software system is impossible. Too often, computerization
for NCM is confined to adding nurse notes to the claim system. Notes cannot be
calculated or analyzed and outcomes cannot be measured based on nursing initiatives.
Recognized NCM value
Nevertheless,
at long last, NCM value is now being recognized. American Airlines recently reported
they are adding NCM’s to their medical management staff and will refer all lost
time claims to them. They cite a pilot project where nurse interventions were
documented and measured, proving their value in getting injured workers back to
work. Additional NCM recognition has been published, as well.Christopher Flatt, Workers’ Compensation Center of Excellence Leader for Marsh Inc., in an article written for WorkCompWire (http://www.workcompwire.com/) stated, “One option that employers should consider as part of an integrated approach to controlling workers’ compensation costs is formalized nurse case management.Taking actions to drive down medical expenses is an essential component to controlling workers’ compensation costs.”[1]
Formalized NCM process
While Mr.
Flatt does not define “formalized” nurse case management, he goes on to say, “Nurse case management is considered a “best practice” in
helping to direct treatment, manage medical costs, and reduce disability
durations, by providing appropriate care and returning employees to work more
quickly. Shorter claim durations and returning injured employees back to work
have a direct correlation in reducing workers’ compensation costs”.[2] These
are certainly the preferred outcomes, but how does the NCM program achieve
them? What are the action steps? How is the process documented and measured for
effectiveness? Importantly, how are the NCM initiatives standardized across the
organization?
Part of the reason NCM is misunderstood is the lack of a
formalized process. The services are delivered by individuals responding to a
situation as presented to them or as they perceive it.
Referral criteria
Mr. Flatt continues with some concrete suggestions such as
deciding what type of claims should automatically be assigned to the NCM and at
what points for existing claims. He suggests predictive analytics can be used
to make these decisions. However, a formalized and optimized NCM process can be
made far simpler and less costly.
Industry research and individual
wisdom
Industry research and wisdom gained through individual and
organizational experience can supply the indicators for referral to NCM. For
instance, one approach is leveraging the America Airlines experience and set the
standard that all lost time claims are referred to NCM.
Another example is research shows comorbidities increase claim
duration and cost. These cases should also be referred to NCM for oversight.
Yet another example is inappropriate medical providers profoundly increase
costs. NCM’s should have efficient electronic tools to direct care to the best
in class providers.
The list of valid criteria for referral to NCM is potentially
extensive. Nevertheless, the question
should be, how can these conditions be
identified in claims as they occur and referred to NCM accurately and consistently?
Computer-aided medical management
As a long-ago nurse and a long time medical systems designer and
developer, I believe the answer lies in appropriate computerized system design.
To be effective, three components are necessary:
1.
Formalized
Criteria for referral
Create electronic profiles
containing combinations of data elements found in claims that represent the
conditions for referral to NCM’s. For instance, when comorbidity ICD-9’s
(diabetes, heart disease, obesity) are found in claims, an automatic referral
is sent to NCM. This formalizes and enforces the processes consistently.
2.
Technology
Powered
Continuously monitor historic and
current integrated claim data. The integrated data should contain five years of
history and be sourced from clams, bill review, and pharmacy (PBM).
3.
Referral Alert
The system automatically notifies
the NCM when the conditions in a claim match that in a profile. This occurs at
the beginning or any point during the claim because the data is continuously updated
and monitored electronically in context with the criteria.
The process is simple, yet
powerful. Moreover, using a computer-intensified medical management power tool offers
even more to the process. All referrals to NCM, the reason for referral, and to
whom they were sent is documented by the system, thereby creating a formalized
audit trail. Organizational procedures or action steps can accompany the
referrals, further formalizing and standardizing the process.
Measuring cost savings
When the system documents the
process automatically, individual claim savings can be measured. For instance,
directing care to a best practice provider, thereby avoiding a low scoring
provider, is a cost savings guarantee. Industry research is used as a basis for
estimating cost savings in each instance and since it is a computerized system,
cumulative savings reports can be produced on demand to quantify the process.
Analytics inspired, technology
powered Medical Management
The NCM
advantage can be formalized and optimized with technology. Learn more about MedMetrics WC Medical Intelligence Profiles with Alerts
and its other medical management power tools or contact KarenWolfe@medmetrics.org for further
information.
[1] http://www.workcompwire.com/2013/01/christopher-flatt-the-case-for-formalized-nurse-case-management/?utm_source=WCR+Daily+1%2F22%2F13+-+A+New+Leader+Speaks%21&utm_campaign=WCR&utm_medium=email
[2]
Ibid.
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