City Controller says workers’ comp costs are through the roof

City Controller Alan Butkovitz found 900 un-reviewed workers’ compensation cases in a city audit. He says the oversight cost the city $64 million.

Philadelphia’s City Controller has found that workers’ compensation costs not previously accounted for by the Nutter administration is three times higher than expected.

Controller Alan Butkovitz says an outside administrator failed to evaluate more than 900 workers’ compensation cases, which cost the city $64 million.  He says instead the contractor concentrated on police and firefighter cases.

“In the city’s response, the city contends they have corrected these deficiencies going forward but we will not be able to confirm this until the 2010 audit is underway,” Butkovitz says. “The city must require the third-party administrator to fulfill the provisions of its contract to require review of all open workers compensation cases, not just police and firefighters.”

The contractor disputes those conclusions.

Butkovitz says invoicing deficiencies by the Department of Human services have cost Philadelphia several hundred thousand dollars.

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