Worker’s Comp Claims Swamp Unit
Worker’s compensation claims have swamped the offices of Los Angeles city employees who handle them, creating payment delays and the potential for fraud, according to a city audit released Friday.
A management audit by the city administrative officer found that the average caseworker in the city’s Personnel Department was handling 1,200 to 1,300 worker’s compensation claims at a time, compared to the usual industry standard of 250 to 350.
A new computer scheduled to go into operation in September, and the addition July 1 of 16 positions to the 59-person worker’s compensation team, could relieve some of the burden.
The audit found that normal operations have caused the computer system to crash, “at times nearly every other day, causing city staff to describe the process as ‘rapidly approaching breakdown.’ ”
Paying the city’s bills actually takes longer now than in 1979, before the system was computerized, the audit found. The average payment delay of nine weeks falls far short of the department’s 30-day goal.
The CAO recommended that the Personnel Department report to the City Council in six months and again in a year on its progress in handling claims.
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