A Brief History of ADR
Workers’ comp coverage costs for NYS construction programs were skyrocketing thanks to labor laws, employer liability laws, and workers’ compensation laws. We saw that the only form of relief from these entities was Alternative Dispute Resolution (ADR).
Introduced in 1995, ADR was first utilized by the Electrical Employers Self Insurance Safety Plan (EESISP), which created a system to leverage this cost-saving program. According to a Cornell University independent study in 2021, EESISP’s ADR program saved nearly 40% over traditional workers’ compensation programs.
Inspired by these outcomes, we made ADR available to other clients eager to take advantage of these savings. Over the past decade, we’ve introduced three major ADR programs to the New York market and have been called on to fix failing programs. As the first and only independent company to specialize in New York State workers’ compensation ADR, we’d be proud to partner with you.
ADR vs Traditional Workers Compensation
ADR
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Accident
In an ADR program, accidents tend to be limited because the contract includes a provision requiring labor and management to work together on safety programs. An ADR program takes safety very seriously and, with the use of toolbox meetings, safety concerns are discussed and addressed in real time with labor.
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Notice
When an accident does occur, each union member has already been briefed on how to report the accident. The work location also has protocols to launch an immediate investigation and notify the ombudsman, insurance carrier, and program administrator. Timely notice is no longer an issue with ADR.
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Causal Relationship
With ADR, there are no claimant attorneys sending clients to litigation doctors whose sole focus is to find total disability and add as many injuries as possible to the accident description. We use highly credentialed physicians who are focused on properly treating workers comp patients and making them whole again. It’s our duty to make sure injured workers are treated ethically.
TYPICAL WORKERS' COMPENSATION PROGRAM
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Accident
We find that there are more accidents in a traditional workers’ compensation program because the importance of safety is not as strongly conveyed to the union members and, generally, they are not as involved with the issue as they are with ADR.
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Notice
One of the biggest challenges in traditional programs is getting proper notice of a work-related accident to the TPA, employer, and insurance carrier. Failure to receive proper notice causes myriad problems. It delays investigation, treatment, and the filing of board forms, which can result in multiple penalties. Timely notice is critical..
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Causal Relationship
Traditional workers’ compensation attorneys send claimants to litigation doctors only. Unfortunately, many of these doctors have little interest in healing their injured patients. In fact, the more disabled their workers compensation patients are, the more successful these practitioners may become.
WHY WE'RE SUCCESSFUL
Our success is due to the extensive knowledge our management team has in all aspects of the New York workers’ compensation market. From writing legislation and brokering policies, our exhaustive skills and decades of litigation experience give us a multidisciplinary approach that is simply unmatched.
HOW WE CAN HELP
MRM works with all claims management platforms, whether it be a third-party administrator, self-insured company, or carrier's claims team. We personally educate each entity to ensure that they are maximizing the benefits of their ADR program and helping to:
- Control medical costs
- Improve return-to-work rates
- Decrease admin costs (legal defense, investigation, IME fees)
- Remove outside attorney participation
- Reduce costs of Labor Law 240
MRM will establish an ADR program to improve medical care, expedite benefits, and reduce your overall costs for both workers’ compensation and general liability claims. We look forward to working with you and your company to implement your first ADR program
