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CEO hails SA workers’ comp turnaround

ReturnToWorkSA CEO Greg McCarthy says the state scheme has transformed its service culture and improved performance.

The scheme provides work injury insurance and regulates the Return to Work program, previously SA Rehabilitation and Compensation.

It reported a $370 million surplus for 2014/15, in stark contrast to a $1.37 billion deficit in 2012/13. The funding ratio improved to 114.3% from 63.7% in 2012/13.

“While some of this improved performance has come from scheme reform, a very large part has come from improved claims management and service delivery,” Mr McCarthy says in the annual report.

ReturnToWorkSA introduced 100 mobile case managers in the financial year, to provide “early customised support and assistance” to injured workers and employers.

The number of people relying on the scheme for income support in 2014/15 fell 34% compared with the previous year, to 3728.

Mr McCarthy, who began as CEO in December 2012, says an “active management style” has been key to the transformation.

“When I started it was clear to me we had a passive, hands-off management style towards running the scheme.

“My first priority was to implement a more active management style where we took far greater responsibility and accountability for the way the scheme was performing. The first step was to get a clear delineation between our regulatory function and our role as an insurance entity.”

Mr McCarthy says improving the scheme’s service culture has been critical.

“We have shifted our culture from one of hiding behind the legislation to a service-first culture of supporting businesses and people who have been injured at work.”

Fraud detection is also an important area for the scheme. In 2014/15 there were more than 130 investigations and nine successful prosecutions.

The Return to Work program started on July 1. It provides work injury insurance to 50,000 businesses and 500,000 employees. The claims agents are Employers Mutual and Gallagher Bassett Services.

The average premium rate for 2015/16 – the first full year of operation – is set at 1.95% of wages, down from 2.75%.