Turning around poor return to work performance
SIRA has today outlined a plan to address poor return to work performance in the NSW workers compensation scheme.
Return to work rates – a key performance measure for the scheme – have continued to decline since 2015, with more workers off work today than ever before.
SIRA Chief Executive Adam Dent said that SIRA has developed a priority action plan to address the factors that are contributing to the poor performance.
“Today I have announced a suite of actions that SIRA will implement to lift return to work performance and get it back to acceptable levels,” Mr Dent said.
“The core role of the workers compensation scheme is to help people recover and return to work.
“We know that staying at work or early return to work after an injury leads to the best possible health and social outcomes.
“Delayed return to work has serious implications for injured people as the evidence shows that the longer a person is away from work, the less likely they are ever to return.”
In 2015, almost 9 out of 10 injured workers were back at work within 13 weeks. Today, less than 8 out of 10 injured workers have returned to work in 13 weeks.
Mr Dent said that these figures show that almost twice the number of workers are off work for more than 13 weeks.
The table below shows the deterioration in return to work outcomes since 2015-2016 across all insurers.
Return to work measures at 4-weeks | |||||||
|---|---|---|---|---|---|---|---|
2015- 2016 | 2016- 2017 | 2017- 2018 | 2018- 2019 | 2019- 2020 | 2020- 2021 | Total change (by percentage points) | |
Return to work rate | 77% | 76% | 70% | 66% | 69% | 65% | -12%↓ |
Stay at work rate | 45% | 42% | 42% | 44% | 35% | 34% | -11%↓ |
Working rate | 87% | 86% | 83% | 81% | 80% | 77% | -10%↓ |
Data is based on the date the claim is entered into the insurer’s system using a financial year fixed time series.
“In addition to poorer outcomes for workers, delayed return to work also significantly impacts the financial performance of the scheme,” Mr Dent said.
“While the deterioration is more pronounced with some insurers, it is pattern that is evident across the system as well as in some other jurisdictions.”
Mr Dent said that driving improved return to work outcomes is his top priority leading into 2022.
“SIRA is committed to undertaking 10 actions aimed at reversing the trend of poor return to work performance and pushing insurers and employers to do better,” Mr Dent said.
“We’re targeting a range of measures that promote compliance with the practices that we know underpin positive return to work outcomes.”
SIRA’s return to work action plan
- SIRA has required all workers compensation insurers to resubmit their business plans with detail on how they will improve 4-week return to work performance. Resubmitted business plans are due to SIRA by 28 February 2022.
- SIRA will review all insurers’ return to work practices in the first half of 2022. The review will include an assessment of insurers’ injury management program, file reviews, interviews with customers and claims staff, and a review of the systems and controls in place to identify workers at risk of not returning to work.
- SIRA is introducing a return to work and early intervention Standard of Practice. The standard articulates SIRA’s expectations when it comes to return to work and provides a checklist to help identify the risk factors for delayed recovery. SIRA is publicly consulting on the standard until 28 February 2022.
- SIRA will commence publishing the return to work performance of all insurers in 2022. SIRA is committed to improving transparency in the workers compensation scheme and holding insurers accountable for their performance.
- SIRA is establishing a dedicated return to work inspectorate. The inspectorate will seek to improve workers’ recovery and return to work outcomes through education initiatives and, when necessary, enforcement action targeted at employers.
- SIRA is funding a research fellowship at the Black Dog Institute for 2 years to focus on return to work for people with a psychological injury. This initiative will help SIRA understand barriers to recovery and help workplaces manage successful return to work for people with a psychological injury.
- SIRA has expanded the scope of its review into the compliance and performance of Treasury Managed Fund (TMF) government agencies to audit return to work performance. The review will support the public sector to implement improvements where they are needed and ensure that it has best practice systems in place.
- SIRA will use predictive modelling to identify and target employers with workers that may be at higher risk of delayed return to work. SIRA will seek to support and educate the employers through outbound calls, site-visits and the provision of information to improve workers’ return to work outcomes.
- SIRA is trialling its successful CTP Assist program in the workers compensation scheme for 12 months. As part of the program, SIRA will make outbound calls to workers at risk of delayed recovery as early as possible in the claims process. This contact will equip workers with the information they need to improve their understanding of the health benefits of good work and drive their recovery.
- SIRA has partnered with the Australian Rehabilitation Providers Association (ARPA) to further explore the benefits of workplace rehabilitation providers on positive return to work outcomes. Recent research shows that the timely engagement of workplace rehabilitation providers improves return to work outcomes by up to 5% for physical injuries and 20% for psychological injuries. SIRA and ARPA will seek to expand on this research base to understand the circumstances and implement initiatives that allow workplace rehabilitation providers to have the greatest impact.