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paths is when you are paying too much for something and it needs to be brought down into a
reasonable range.

Cost containment should be nothing more than a byproduct of an otherwise healthy home
modification program. If the appropriate process is in place, cost containment will follow.

The David Corey Company created the cost containment formula to help carriers and providers

understand ways to contain cost and establish home modification protocols.

Cost Containment = Accurate scope + Fair price + Timely response

An accurate scope recommends modifications that enable the injured worker to obtain the highest

level of independence within their living environment or an environment that allows the
appropriate level of care in the most practical and cost-effective manner. An accurate scope
focuses on functional outcomes and safety precautions not only for the injured worker, but for

those living in the home and those assisting with primary care responsibilities. And An accurate
scope does not entitle the injured worker or their family to remodel their homes or upgrade their

living standards unless it is directly related to the functional or medical necessity of the injured
worker.

A price based on fairness, equally represents the interest of the carrier, the injured worker and

the contractor. The contractor is paid what is reasonable for the work performed. The carrier isn’t
expected to pay a greater price than what is reasonable and is not expected to pay for more work
than what is considered medically or functionally necessary.

A timely response limits the time the project remains open, expedites the necessary steps
required on the project and allows the injured worker to return home at the time of discharge from

the rehab facility. Although the expected response time of the provider can be quite aggressive,
the reciprocal cannot be expected. There are many variables that the carrier has to navigate, and
authorization frequently depends on the progress of the injured worker, physical stability,

functional gains, and discharge planning.

If by ensuring a reasonable price you mean ensuring a contractor’s estimate is accurate, that can
be more challenging. In workers’ compensation, the traditional way estimates are submitted

include a contractor submitting their estimates to a third-party network company. The network

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