High Cost of Injuries
Injuries and illnesses come at a high cost. When an employee gets hurt on the job, hospitals pay the price in many ways, including both direct and indirect accident costs that add up to a much higher total than you might think.
Generally, the cost per workers compensation injury claim will range from $3,000 to over $10,000, but it can cost much more. The most expensive injuries by healthcare workers are caused by overexertion and slipping, tripping, or falling. Injuries sustained from these actions on a dry, level surface have an average cost per claim of about $9,000.
1. Direct Accident Costs
Direct, or insured costs for accidents are usually considered those costs covered by workers compensation insurance and other minor medical costs for the accident. The company pays insurance to cover these costs. Examples include:
- workers' compensation for lost wages and major medical costs
- other incidental medical costs
2. Indirect Accident Costs
Indirect costs are all the "uninsured" additional costs associated with an accident. What is important to realize is that indirect costs are usually much greater than direct costs: from 2 - 10 times or more expensive. Examples include:
- temporary staffing
- lost productivity
- overtime when injured employees miss work
- turnover costs when an injured employee quits
- property damage
Unknown Accident Costs
Unknown costs are difficult or impossible to measure and may have a "fatal" impact on the success of an organization. Examples include:
- Lower morale
- Loss of reputation
Workplace safety also affects patient care. Manual lifting can injure caregivers and also put patients at risk of falls, fractures, bruises, and skin tears. Caregiver fatigue, injury, and stress are tied to a higher risk of medication errors and patient infections.
Knowledge Check Choose the best answer for the question.
1-2. Indirect (uninsured) accident costs can be ______ as direct (insured) costs.
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