Internal occupational safety and health programs, managed by professionals in the field and employed by business, are in jeopardy. With corporate staff downsizing due to the competitiveness of the global market, occupational safety and health professionals must demonstrate cost‐effectiveness or face the real possibility of elimination of their positions. It is no longer sufficient for such professionals to be retained solely to ensure regulatory compliance or as a value‐added service.
Currently, the United States spends more than $1.3 trillion annually on health care. A recent study by the Health Care Financing Administration warns that this figure may nearly double to $2.1 trillion by 2007. Because these expenses have a significant impact on the corporate balance sheet, management has begun to search for ways to contain and even reduce the spiraling growth of these expenditures. It is possible to limit expenses related to employee health and safety; however, it requires a new, coordinated, and multidisciplinary approach to loss prevention and control.
A truly effective loss control program must integrate the occupational health and safety team with that of risk management. The occupational health clinician, industrial hygienist, and safety professional must coordinate their efforts with the risk manager and workers' compensation claims professional. As a team, goals must be established. With senior management's input and support, policies must be created and programs designed and implemented. Ultimately, to monitor program effectiveness, accurate data must be collected and organized so that reductions in costs related to health and safety are documented.