Wednesday, August 20, 2025

Measuring RTW outcomes in Workers’ Compensation: Part 2 – Jurisdictional Approaches

In Part 1, I highlighted three different approaches to measuring return-to-work outcomes:

1.     Standardized calculation based on standardized claims payment data at specific milestone submitted by jurisdictions (AWCBC approach),

2.     Retrospective survey of workers by central researcher group using a stratified sample from each jurisdiction withing strict time frames (Safework Australia),

3.     Retrospective interview approach normalized for each participating jurisdiction (WCRI)

 

Each approach provides insights for stakeholders and policy makers. Comparability and consistency among participating jurisdictions are often primary objectives. 

 

Individual jurisdictions have different objectives in measuring their RTW outcomes, each tuned to the features, priorities, and demands of their jurisdiction. 

 

With that in mind, here are four examples of jurisdictional RTW outcome measures.

 


Texas: 2023 Return to Work

 

The Texas Department of Insurance (TDI), Division of Workers’ Compensation, Workers’ Compensation Research and Evaluation Group (WCResearch) analyzed RTW outcomes for claims between 2007 and 2020 in this report. The report focuses on initial and sustained RTW (defined as a return to work and staying at work for three calendar quarters (9 months) following injury).

 

I asked WCResearch at TDI to expand on the study methodology:

 

The return-to-work report uses data on tens of thousands of employees who received Temporary Income Benefits (TIBs) after a work-related injury, examining wage records from the Texas Workforce Commission to determine when these individuals began earning wages again. The report assesses whether this return was classified as initial, referring to the first time an employee returns to work after the injury, or sustained, defined as maintaining employment for three consecutive quarters. These findings are linked to demographic details such as age, industry, employer size, and benefit type allowing for further statistical analysis. The methodology also includes an analysis of average wages before and after the injury, along with the average number of days employees spent away from work.

 

The results over the study period include the following:

 

92% of employees were back at work within one year.

 

69% of workers back at work within six months stayed at work and achieved pre-injury earnings within two years.

 

Days away from work averaged 43 (median 29).

 

For 2020 injuries, the initial RTW rate at six months post injury was 83%, a bit higher than the average 80% for the 2007-2020 study period. The sustained RTW rate was 69%, higher than the average 63% for the study period.

 

The “sustained” RTW outcome in this report is striking.  The three quarters (9 months) of earnings post RTW is a significant threshold and the objective sources for this data provide a rigour not found in many studies that rely on interview responses.

One challenge with this study approach is the lag necessary for a year’s cohort of claims to fully develop (close) to their ultimate duration. While that is happening, changes to law, policy, practice, and economic conditions may impact current RTW results.

 

Victoria Australia: WorkSafe Victoria RTW

 

WorkSafe Victoria has made return to work a “headline” Key Performance Indicator (KPI) in their Corporate Plan 2023-2024 and Strategy 2021-2024. (https://www.worksafe.vic.gov.au/resources/corporate-plan).  “At a headline level, we measure safe and sustainable return to work outcomes for injured workers with physical and mental injuries at 16 weeks, 26 weeks, 52 weeks and 104 weeks post claim lodgment. A return to work is defined as one that has been sustained for a three-week period.”

 

In Victoria, the claims management function is delivered by third party “agents” with WorkSafe Victoria oversight. Remuneration of agents includes a performance adjustment for meeting targets set for RTW outcomes at 26 weeks. Claims management software requires case managers code RTW status upon case closure and provide for case notes or other documentation confirming RTW details.

 

The following is my summary of WorkSafeVicotria’s methodology for the26 week (182 day):

1.     Calculation:
      Number of injured workers working at 182 days [divided by]                                                                                                     
     Population (paid claims in reporting period with > 10 days weekly compensation paid (including employer excess))

2.     RTW Status Assessment made 182 days post injury.

a.     Assessment of whether the worker has continued to remain at work for three weeks (21 days) following the return to work.

b.     Based on recorded fielded responses in systems (ACCtion, Fineos) and documentation of RTW (email, letter, Novus note, …).

3.     RTW Status Assessment and Validation at 21 days are subjected to random sample audit.

 

Note the exclusion of the 10 days of weekly compensation) in this calculation. Shorter duration absence in this range typically resolves with 100% RTW. Eliminating these from the calculation denominator and the numerator will tend to lower the overall RTW rate than if these cases were included.

 

WorkSafe Victoria’s data relies on the integrity of the information encoded in claims management systems about initial and continued employment at three weeks.  Audits of data entries to confirm the integrity of the coded information is a critical component of this measure.

 

A key feature WorkSafe Victoria’s RTW outcome reporting is the separate tracking of physical and mental injuries.  Mental injury cases tend to have longer recoveries. If a jurisdiction has a larger proportion of mental injury claims, a combined RTW measure will result in a lower percentage of RTW at 26 weeks.

 

For physical injuries, the result at 26 weeks is 73.60%, but for mental injuries, the return-to-work rate was 41.60%. This highlights a significant difference between mental injury cases and other injury types.

 

WorkSafeBC: Key Performance Indicator

 

WorkSafeBC is the operating name for the Workers’ Compensation Board of British Columbia. Its operational priorities include “Maximize overall recovery and post-injury earnings for injured workers”. A key performance indicator (KPI) to track progress against this priority objective is included in their Annual Report and Service Plan.

 

The KPI, “Improve return-to-work outcomes” carries the description: “The percentage of B.C. workers who return to work within six months (26 weeks) of their work-related injury.” The calculation method as stated in the 2024 Annual Report and 2025-2027 Service Plan (p. 34) is described as follows: 

 

“This KPI measures duration (by 26 weeks), whether the return to work is voluntary (the worker does not object), and whether it is safe and durable, with no subsequent inability to work for 30 days. To track the percentage, we compare the number of claims meeting these criteria with the total number of wage-loss claims open for more than 26 weeks.” [emphasis added].

 

Fielded case management data are used to determine status on closure. The absence of a claim re-opening indicating an inability to work infers durability.  There is no explicit confirmation of sustained RTW or return to full earnings.  

 

The KPI results reached a high of 81.3% in 2022 before falling to 78.5% in 2023 and rising again to 79.7% in 2024. The target going forward is to achieve 81.0% return to work by 26 weeks. (Note:  AWCBC records 85.00% (2022) and 83.62% (2023) under 25.5-Percentage of Wage-Loss Claims off Wage-Loss Benefits at 180 days (%)

 

There is no waiting period in British Columbia’s workers’ compensation system, so the results capture many very short duration claims.  These cases tend to have very high successful RTW outcomes.  Self-insurance is allowed in BC but not self-administration, so the results include for these deposit-class employers (governments, certain large employers) are also reflected in this measure.

 

South Australia: return-to-work milestones

 

When you rebrand your workers’ compensation authority “ReturnToWorkSA”, the messaging is clear. As you might expect, RTWSA has measures that reflect RTW status at various milestones such as 4, 12, 26, 52, and 78 weeks.

 

The data-rich report on ReturnToWorkSA Insurer Statistics FY2024 provides RTW outcomes for the 26-week milestone, similar to others noted in this part.  This time, there are three RTW status outcomes noted: “Not at work”, “Partially at work”, and “Fully at work”.  This reporting reflects a level of importance on “stay at work” outcomes within the system.  

 

The four-year time series provided for this milestone reflects a trend toward fewer workers not working and an increase in the number and proportion of workers fully RTW:

 

Not at work 5.7%,

Partially at work 3.5%,

Fully at work 90.9%. 

 

This is a population-based study reporting on 12,121 cases in the 2024 result.  According to RTWSA:

 “The milestone is measured from the workers first date of work incapacity, or injury date if the worker does not have work incapacity. Improvement has been achieved with a multifaceted program of work aimed at improving services to injured workers and employers.”

 

Note the subtlety of a worker suffering a work injury but not a work incapacity. The accepted claim covers the medical costs, but the worker may continue working on modified duties as part of a stay-at-work program, an approach actively promoted by RTWSA.

 

Summary Comment

 

Jurisdictional approaches to measuring RTW outcomes are often specifically crafted to address particular needs and priorities.  Where the national measures must find commonality among the jurisdictions, individual jurisdictions can allow the unique data systems and to provide greater depth.  Each approach starts with a purpose, and each design has its limitations.  In general, the results highlighted by the measure lag significantly behind changes in policy or initiatives to improve outcomes. 

 

Texas can focus on sustainable RTW outcomes, WorkSafe Victoria can differentiate results for mental and physical injury cases, and ReturnToWork South Australia can provide data on partial RTW and include successful stay at work outcomes that might be excluded from other designs.

 

Note the different approaches in determining sustainability.  In Part 1, we saw Safework Australia and WCRI ask workers directly about their work status as the time of interview. Their retrospective methodology builds in significant distance from initial RTW to assess sustainability of the RTW.  In Part 2, we see WorkSafeBC uses a case criterion “with no subsequent inability to work for 30 days” to exclude non-durable RTW outcomes from its measure, while WorkSafeVictoria uses an audited 21 day record (or direct/indirect inquiry) to assess whether the worker has continued to remain at work.

 

Again, there is no one “right way” to measure RTW outcomes.  Those jurisdictions willing to participate in studies, establish well defined measures, and post transparent results allow leadership, stakeholders, and policy makers assess performance and achieve better outcomes for injured workers and their families. 

In Part 3, we will look at RTW outcome trajectories. 

 

[This post was prepared as a resource for DMCCT- Evaluating DM Programs & Assessing RTW Processes, Pacific Coast University for Workplace Health Sciences]

 


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