Liberty Mutual has launched a program it says brings advanced medical cost analysis to the workers' compensation market.

The Boston-based commercial and personal lines property-casualty company is working with Thomson Medstat on a program that, among other things, helps determine statistical averages for treating specific injuries in any city or state.

For example, the program can give an idea of how many office visits are needed to heal a torn rotator cuff in Denver, or what it costs to set a compound arm fracture in Pennsylvania. It can then give an estimation of how individual caregivers and facilities in the area compare to that baseline.

“It is all about turning raw data into useful information,” said Mark Sidney, Liberty workers' compensation claims manager for large clients. “The system lets us explore each opportunity, drilling down to define the challenge and frame its solution,” he explained.

Mr. Sidney said among the benefits of the program will be more cost-effective networks. “Only those providers and facilities who have demonstrated cost effective care–that is treated within the established statistical benchmarks–are included in the medical care networks available to policyholders in the states where employers direct the care of the injured worker,” Mr. Sidney said.

Tighter bill review should also result as bills will automatically be reviewed to make sure they were properly coded. For example, California primary care physician's bills are usually pegged as more complex and will therefore be flagged for closer scrutiny.

Liberty Mutual spokesperson Rich Angevine said it was too early to assign specific dollar savings to the program since it was only implemented last year. In six months the company should have a better idea, he said.

Special Reports /

Liberty Program Makes Comp Cost Comparisons

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