NSW workers’ compensation claims management is set for major changes next year when new service providers will commence following a tender process launched last week.

Submissions to provide claims management services for the icare nominal insurer workers’ compensation scheme are due by April 15. Providers intending to bid for a contract will receive details under a confidentiality deed poll.

The tender process follows the final 12-month extension to icare’s existing provider contracts, with successful bidders to begin on January 1.

Minister for Finance and Employee Relations Damien Tudehope says extensive consultation has been undertaken, and will continue through the tender process and as the new claims model takes shape.

“The intention is to include more roles for service providers, encouraging different providers and specialised skills, increasing transparency of performance of providers and providing greater choice for employers over time. This will drive improved outcomes for injured workers and businesses through competition,” he said.

“This new approach aligns with the McDougall Review, which found that icare had previously sought to introduce changes to the claims model too quickly without sufficient testing. This time, icare is adopting a measured, staged implementation.”

icare CEO Richard Harding says delivering better outcomes for the more than 326,000 employers and 3.6 million workers in the private sector that the nominal insurer serves is paramount.

“The new model aims to create a competitive marketplace, enabling choice, innovation and continuous improvement to support injured workers and employers,” he said.

“We’re looking for enhanced performance of case managers, specialised claims service providers and we’re targeting performance incentives to drive better outcomes.”