SOURCE: pihms, Inc

pihms, Inc

October 14, 2010 12:58 ET

Employers Lower Healthcare Costs With pihms Absence Management Programs

PITTSBURGH, PA--(Marketwire - October 14, 2010) -  pihms, Inc. (, a leading provider of integrated software solutions for tracking, measuring and managing human capital through pihms Leave Management, pihms Safety Solutions, and pihms Care Solutions, is proving that lowering employers' healthcare costs is an additional benefit to its absence management systems.

Contributing to the recent article "Reduce Healthcare Costs With Better Attendance Management," featured in the August 31, 2010 edition of the Thompson Employee Benefits Series Reducing Healthcare Costs for Employers, Patrick J. Kalnas, President and CEO of pihms, spoke to the gaining realization among employers that absence management programs produce lower healthcare costs. Kalnas shared the numerous ways in which automated absence management lowers healthcare costs, and the impressive return on investment (ROI) that employers are enjoying.

Illustrating just one of the ways that healthcare costs are reduced through automated absence management, Kalnas said, "Absence management programs enable the employer (or its wellness/disease management program vendor) to monitor non-work related illness or injury to ensure that workers are receiving appropriate treatment and health coaching, which will keep them from getting sicker and help them return to work more quickly." Kalnas went on to explain, "An employer that is not monitoring absences won't know as quickly about absences that affect healthcare costs, in many cases, not until claims data comes in three to four months later. In contrast, if a health coach, with access to a pihms absence management system, calls the employee right away (with real time data from the system), they'll be on top of situation three to four months earlier to provide treatment and utilization management."

Delphi Automotive, a pihms client, opted several years ago to automate its procedures for work-related illnesses and injuries. Diane Hopwood, Delphi's then U.S. Corporate Nursing Supervisor, said, "By monitoring and better controlling absences due to work-related illnesses and injuries, Delphi reduced its workers' compensation medical costs to an average of 25 percent. Employees returned to work faster, and incurred fewer medical costs."

Kalnas estimates that the average ROI for the use of automated absence management is about 5:1, including cost savings from payroll as well as healthcare. Further highlighting the costs of absenteeism, a Mercer survey released in June 2010 was referenced in the article. The survey notes that unplanned absences cost employers 8.7 percent of payroll, more than half the 13.6 percent of payroll costs of healthcare in 2009. The survey also notes that the total direct and indirect costs of absences averages 35 percent of base payroll.

About pihms:
pihms, Inc. is a Software as a Service (SaaS) provider focusing on best practices for tracking, measuring and managing human capital. pihms' unique (and patented) process takes employee health, safety, leave management, and case management information from disparate sources and delivers it to the right decision makers at the right time. The workflow ensures that best practices are used to remain compliant with all FML and OSHA regulations. pihms, Inc. is headquartered in Pittsburgh with offices in Atlanta and Glasgow, Scotland. For more information visit the pihms website at

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