Tag Archives: post-offer

Is Baseline Testing Worth the Effort?

We have written several articles on the topic of baseline testing and demonstrated some substantial results. Today, with more than three years of baseline data, we are still asked the question: Is baseline testing really worth the effort? That’s the question we address in this article.

First, some background on baseline testing:

Often called a bookend solution, it is a non-discriminatory way for an employer to ascertain if a work-related injury arises out of the course and scope of employment (AOECEO). For a baseline test to be valid for musculoskeletal disorders (soft-tissue injuries), it has to assess the specific function of the nerves and muscles of  the spine or other body part in question. In the case of soft-tissue injuries, the test should include electromyography (EMG), range of motion and functional assessment for some of the essential functions of the job. The test should be noninvasive.

The baseline test data is stored unread until there is a work-related injury and then compared with a post-incident test to determine a change in condition or AOECOE status.

A baseline test is not designed to see if somebody can perform the essential functions of their job and therefore differs from the post-offer, preplacement evaluation (POET). Another major difference between a POET and a baseline test is that baseline testing can be done on the existing workforce. According to the ADA, post-employment medical inquiries and exams can only be done when they are job-related and consistent with business necessity. 42 U.S.C. § 12112(d)(4)(A).  Two recent cases from the Sixth Circuit (Bates v. DuraAuto Systems and Kroll v. White Lake Ambulance Authority) can assist employers with questions. It is our opinion, consistent with Bates, that a medical exam is not prohibited as long as it does not identify or single out a disability. Therefore, baseline testing is permissible, because the data is never evaluated unless a post-loss event occurs and at that time becomes subject to workers’ compensation requirements. At no point does the baseline testing determine or identify disability or an individual’s inability to perform their job functions.

According to Kroll, an employer that requires medical examination of an employee has to have a reasonable belief, based on objective evidence, that the test will satisfy  a vital function of the business. The keys are objective evidence and vital business function. Accepting AOECOE claims, and getting the employee the best care for the work-related injury, will fulfill this obligation.

With recent case law, and a basic understanding of the differences between POET and baseline testing, let’s evaluate a case study:

A national concrete manufacturer and supplier conducted POETs on all new hires. The employees use heavy equipment, and POET had proven to be a valuable tool to ensure that people could handle the equipment and to increase safety in the workplace. However, in the event of an injury, the POET test could not determine if there was an AOECOE condition and could not assist in identifying better treatment for the condition. To better help employees in the event of a work-related injury, the company decided to do baseline testing for existing employees and new hires.

Mr. Smith, a 48-year-old driver who was an existing employee, felt a sharp pain in his back after lifting at work. When he reported the incident, he stated that he  was injured before his EFA baseline evaluation and that even no change from the baseline still meant he had a work-related injury. As part of the  EFA-STM program, he was referred for evaluation and sent for post-injury assessment. Based on the EFA comparisons, chronic unrelated pathology and no acute pathology were noted on both evaluations. Furthermore, no change of condition was noted, and the comparison testing revealed that he was improved on the post-loss test. He subsequently pursued a surgical opinion on his own, without authorization  from the workers’ compensation carrier. The surgeon who evaluated him recommended a lumbar surgery, and this was performed, again without authorization. After the surgery, the court commissioner found the injury to Mr. Smith’s back not to be work-related, based on the EFA-STM results. Therefore, surgery was not compensable. Furthermore, the post-incident EFA testing found surgery wouldn’t have been indicated even if there were a change in condition. Mr. Smith has still not been able to return to work following his back surgery.

This case demonstrates that the EFA-STM program enables determination of AOECOE conditions. In Mr. Smith’s case, the baseline testing program was not only instrumental in determining there was no AOECOE, nothing OSHA-recordable and no mandatory reporting but, most importantly, was able to determine that Mr. Smith was not a surgical candidate. Thousands of dollars for unnecessary medical care was avoided by the company for an injury that was not work-related, according to an objective determination by the EFA testing.

Is baseline testing worth the effort? You be the judge.

If You Don't Do This, It Can Cost You Big Money

This is the third article in a five-part series on risk management. Additional articles in this series can be found here: Part 1, Part 2, Part 4, and Part 5.

In our last segment, we discussed how important the “Pre-Hire” process was to your bottom line relating to various “on-boarding” activities companies should consider when hiring new employees.

The second step in the “4P” plan is known as the “Post-Offer” step. At this stage, you should be asking yourself this question, “What should we be doing after we've offered someone a job?”

That question leads to another very important question: Does your company use a Post Offer Health Questionnaire and a Conditional Offer of Employment letter after you've made an offer of employment?

If your answer was no, please realize you're setting your company up for potentially large losses to your profits. A manufacturing company offered a job to a 34-year-old male without using these two documents which ended up costing them an additional $76,178 in insurance premiums and $2,158,742 in lost revenue.

By having an applicant sign a Conditional Offer of Employment letter before putting them on the job, you at least give yourself time to conduct your background checks that should be done on all applicants. You're putting your new hire on notice of the various procedures you conduct during your hiring process. In having the new hire complete a Medical Health Questionnaire, they are documenting their past medical history that should show any issues that might be a red flag that could keep them from fulfilling their job description safely. You may want to consider having your applicant take a “Physical Abilities Test” to ensure they are able to fulfill all the physical requirements of the job safely.

Let me explain the importance of why the use of the medical health questionnaire is so important. In 1961, an important case known as “Martin Company vs. Carpenter” set the precedent which later became statute in 1994 (in Florida). It gives your insurance company the ability to deny workers’ compensation benefits if an applicant commits fraud in their employment documentation and did not disclose material information.

In the case study above, the manufacturing company did not use the questionnaire which would have given the applicant the opportunity to share that he had back surgery 3 months prior, and due to his limitations, would have not qualified for the job and its physical requirements. The new employee re-injured his back which required more surgery which cost their company significant profits.

If an applicant were to commit fraud, the carrier has the ability to deny the claim. If the applicant were to disclose his previous injury, you’ll need to evaluate the situation to see if accommodations can be made or if they are physically able to do their job safely.

As another point, please make sure you keep an applicant’s medical questionnaire in a separate filing cabinet away from routine paperwork in order to be in compliance with HIPPA laws.

In our next post, we’ll look at the third part of the “4P” plan — yhe Pre-Claim process and its importance to your profitability.