Using Resampling Techniques to Measure the Effectiveness of Providers in Workers' Compensation Insurance

We use resampling techniques to analyze tile impact of providers on workers' compensation costs taking into consideration inherent differences in claim populations between providers. Resampling techniques provide a nonparametric determination of a statistic's distribution and a measure of effectiveness that is not sensitive to deviations from the assumptions underlying most parametric statistical procedures. These techniques are applied to a subset of an extensive nationwide database of workers' compensation claims to demonstrate the methods.