Cost Containment Strategies. The NSSC has adopted Lean Six Sigma as its formal approach and methodology to continuous improvement. A team of NSSC senior managers developed the implementation strategy, and it was approved by the NSSC Executive Director in FY10. In order to reduce operational costs, the NSSC must introduce innovation and employ consistent processes to provide services. The NSSC team is currently being trained in Lean Six Sigma processes, and the training is expected to be completed during October 2010. During FY11, the NSSC is anticipating the use of Lean Six Sigma to identify cost drivers and other factors that impact the most efficient and cost- effective methods for delivering services. The team will focus on those processes and initiatives identified by the Institutional Readiness Project (IRP) teams. As these activities impact customers, they will be brought into the process for consultation and guidance. As the NSSC implements specific Lean Six Sigma activities and has reportable and validated information, the NSSC Board of Director’s will be briefed during the regularly scheduled meetings. Centers will be briefed during periodic Center Update ViTS.
Cost Containment Strategies. The Authority considers cost containment to be a high priority, as evidenced by the implementation of innovative cost containment programs designed to assist member agencies in preventing claims, and minimizing the cost of claims when they do occur. The Authority regards training as an integral component of loss prevention and offers a robust training program to its members including academies, workshops, and web-based training. Academies are multi-day training opportunities that focus on a particular public sector discipline. They present essential theories and techniques, and provide practical risk management solutions to public agency managers and elected officials. Workshops generally offer single-day trainings with an emphasis on meeting Cal-OSHA requirements and instruction on best risk management practices covering a wide variety of topics. The Loss Control Action Plan (LossCAP) is another valuable tool that assists members in reducing the cost of risk. LossCAP is a comprehensive, customized risk management action plan developed in collaboration with each agency’s staff. It is based on an analysis of historical claims and their root causes, as well as physical on-site inspections. LossCAP identifies the most critical loss exposures unique to each member, and maps out strategies to assist them in effectively addressing those exposures. The action plan is administered by one of five regional risk managers located throughout the state to assist members on a regular basis. The workers’ compensation program contains a series of cost containment mechanisms including a process for screening high-risk cases, pharmacy benefit management, utilization review, and bill review. Authority staff reviews lost time claims at four week intervals, high exposure losses quarterly, and litigated cases annually. To encourage the development and implementation of law enforcement policies conducive to loss prevention and positive litigation outcomes, the Authority provides for member participation in law enforcement policy manual subscription services. These services monitor and update policy language based on recent legislation, best practices, field incidents, regulatory agencies, consent decrees, court rulings and other influences that impact law enforcement operations. In addition to the aforementioned items, the Authority’s liability program provides continuous consulting support in a variety of ways to help members lower risk exposures. The employment intervention ass...
