CONFIDENTIAL 1

Musculoskeletal Disorder Incidence Rates

CONFIDENTIAL 2

REPORT OF AN INJURY

CONFIDENTIAL 3

• AN EMPLOYEE REPORTS A WORK-RELATED INJURY• 30-50% OF REPORTED INJURIES ARE SPRAIN/STRAIN

• EMPLOYERS MUST THEN COMPLY WITH:• FEDERAL AND STATE STATUTES

• CMS MANDATORY REPORTING ACT

• ADAAA (AMERICANS WITH DISABILITY ACT & AMENDMENT)

• OSHA

• HOW DO YOU VERIFY IT IS WITHIN COURSE AND SCOPE (AOECOE)?

• HOW DO YOU IDENTIFY THE AGE, LOCATION AND APPROPRIATE TREATMENT OF THE INJURY?

EFA-STM A R E V O L U T I O N A RY A P P R O A C H T O W O R K C O M P C L A I M S

CONFIDENTIAL 4

• EFA: ELECTRODIAGNOSTIC FUNCTIONAL ASSESSMENT• A PROPRIETARY FDA-CLEARED DEVICE FOR THE DIAGNOSIS OF SOFT TISSUE INJURIES• A SIMPLE, NON-INVASIVE BASELINE TEST COMPARES CURRENT, PRE-INJURY STATUS • USES 5 MEDICALLY ACCEPTED TESTS TO OBJECTIVELY EVALUATE MUSCLES IN THE NECK, SHOULDER, BACK

AND EXTREMITIES

• EFA-STM: SOFT TISSUE MANAGEMENT PROGRAM• A BOOKEND SOLUTION WITH EFA TO CONTROL SOFT TISSUE WORK COMP CLAIMS COSTS• BASELINE TEST ALL NEW EMPLOYEES IN A PARTICULAR JOB CLASS• POST-INCIDENT TEST TO VERIFY NATURE/SCOPE OF INJURY

• RETURNS CONTROL OF MEDICAL CARE TO EMPLOYER OR CARRIER – EVEN IN STATES THAT DO NOT ALLOW EMPLOYER CONTROL

EFA-STM PROCESS

CONFIDENTIAL 5

EFA PROTOCOL CUSTOMIZED FOR JOB CLASSIFICATION/PHYSICAL REQUIREMENTS

EFA BASELINE PERFORMED ON EMPLOYEES IN JOB CLASS

UNREAD BASELINE STORED

EFA POST-LOSS TEST PERFORMED AND COMPARED WITH

BASELINE

WORK-RELATED INJURY REPORTED

EFA - HOW IT WORKS

CONFIDENTIAL 6

EFA INCORPORATES THE FOLLOWING ASSESSMENTS:• ELECTROMYOGRAPHY (EMG)• RANGE OF MOTION (ROM)• FUNCTIONAL CAPACITY

THE TEST USES ELECTRODES + DYNAMIC MOVEMENT TO PINPOINT AGE, LOCATION OF INJURY AND EFFORT

CONFIDENTIAL 7

EFA – STM STRATEGY• PROACTIVE RISK MANAGEMENT PROCESS FOR THE

OBJECTIVE DIAGNOSIS FOR WORK-RELATED INJURIES

• TESTING PROTOCOLS DEVELOPED BASED ON THE ESSENTIAL FUNCTIONS OF THE POSITION AS OUTLINED IN THE JOB DESCRIPTION PROVIDED BY CLIENT

• TEST NEW HIRES AND STORE THE UNREAD DATA AS A BASELINE TEST

• TEST GROUPS OF EXISTING WORKFORCE WITH AN EVALUATION AND STORE AS A BASELINE

• POST-INJURY: PERFORM EFA TEST – COMPARE WITH BASELINE – DETERMINES WORK-RELATED STATUS

EFA EVALUATION PERFORMED

CONFIDENTIAL 8

ComplianceAppropriate muscle usage and

appropriate recruitment of type II motor units

Non-ComplianceInappropriate muscle usage

and no recruitment of type II motor units

Objective Medical Evidence

Pain

BENEFITS OF EFA-STM

CONFIDENTIAL 9

• BETTER CARE FOR THE WORK-RELATED INJURY

• EFA-STM IS LEGALLY DEFENSIBLE

• CAN BE PERFORMED ON EXISTING WORKFORCE

• ADA COMPLIANT

• MITIGATE RISK

• CUT CLAIMS COST BY 30-80% IN THE FIRST YEAR

CONFIDENTIAL 10

9/11-8/12 9/12-8/13 9/13-8/14 9/14-8/15, Post EFA - STM0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

515,100586,477

440,750

38,344

Claims Cost Related to Soft Tissue Injuries

Ready-Mix Savings Analysis

Excludes soft tissue injuries not addressed by the EFA – knee, ankle, wrist sprains

Cost of program: $82,000

Baseline program began 8/14 with new hires with existing and new employees

5 2 % r e d u c ti o n i n # o fr e l e v a n t c l a i m s f r o m

p r e v i o u s y e a r

8 3 % r e d u c ti o n i n c o s tp e r c l a i m

Manufacturing Co. Savings Analysis

5/1/14-4/30/15 5/1/15-4/30/160

10,000

20,000

30,000

40,000

50,000

60,000

70,000

60,375

6,744

Claims Cost Related to Soft Tissue Injuries

Excludes soft tissue injuries not addressed by the EFA – knee, ankle, wrist sprains

Cost of program 5/14-4/15: $14,250

Baseline program began in 5/15

Oklahoma Transportation Co. Claims ROI

3/11-2/14 Average Annual Cost 3/14-2/15 3/15-11/15 $0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$303,535

$115,942

$32,422

Claims Cost Related to Soft Tissue Injuries

Excludes soft tissue injuries not addressed by the EFA – knee, ankle, wrist sprains

Baseline program began 9/14 with new hires with existing employee

Top 100 Transportation Co. Savings Analysis

10/11-9/12 10/12-9/13 10/13-9/140

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

3,172,000

2,623,0002,098,000

Claims Cost Related to Soft Tissue Injuries

Excludes soft tissue injuries not addressed by the EFA – knee, ankle, wrist sprains

Cost of program: $41,267 $54,698 $82,237

Baseline program began in 10/11 with new hires w/phased geographic rollout

CONFIDENTIAL 15

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