Catastrophic

HERO MSK: The Power of Value-Based Managed Care

HERO MSK: The Power of Value-Based Care

With workplace injury care facing high fragmentation and low patient satisfaction, HEROSM MSK combines proactive engagement with carefully integrated technology to improve outcomes, lower costs, and increase certainty.  

Workplace musculoskeletal injuries now account for the majority of long-term medical spend, representing $20 billion1  in annual costs for the workers’ compensation system. Injured workers are bounced from provider to provider, each incentivized to maximize activity instead of outcomes.  

Care is often uncoordinated, data visibility is minimal, and patient engagement is not a priority. It’s easy for patients to feel isolated, start to lose motivation, and even consider legal representation and litigation on what should be a routine recovery.  

An integrated answer to fragmented care
Current industry benchmarks demonstrate the results of this fragmented system:  

  • Reduced patient engagement rates, as low as 13%2
  • Attorney representation rates up to 40%2
  • Lower return to work, with only 62% of shoulder cases seeing final RRTW in less than six months2
  • Three to four times higher claim costs3 

Previously, we demonstrated how HERO MSK aligns incentives through bundled care management, bringing predictability and certainty to musculoskeletal injury care. Now, we’re showcasing the proven results of this innovative approach and how a focus on engagement leads to successful recovery, better outcomes, lower costs, and certainty of medical reserves.  

The impact of aligned incentives and patient engagement
Fixing a fragmented system starts with engagement. Through a proactive care coordination model that puts injured workers in the driver’s seat of recovery, HERO MSK has achieved substantial improvement compared to the above benchmarks for high-acuity musculoskeletal injuries:  

HERO MSK Stats

Through a high engagement, value-based model, HERO MSK addresses non-surgical and surgical interventions for high-acuity musculoskeletal injuries spanning across the entire episode of care. A single accountable team combines clinical management and behavioral health with real-time insights to identify risk early, avoid unnecessary utilization, and deliver maximum functional outcomes with financial certainty.  

For high frequency, high acuity MSK claims, accuracy of reserving and reporting gives actuaries enhanced planning capabilities, supporting a program of stability for these potentially volatile cases. By promoting engagement and collaboration with injured workers from the outset, HERO MSK helps reduce attorney representation and exposure to costly litigation.   

The pillars of success in MSK care
We’re able to ensure greater engagement, certainty of care direction, certainty of outcomes, and certainty of medical cost reserving through a focus on a few simple but powerful components: 

  • Early, clinician-led engagement: Injured workers receive immediate engagement from MSK-trained clinicians who establish trust, assess risk, and actively manage recovery barriers to keep cases on track from day one. 
  • Purpose-built technology for oversight and accountability: Structured engagement tools and real-time recovery tracking support consistent participation while producing actionable data for care teams and claims partners.  
  • Performance-based provider alignment and centers of excellence: In contrast to convenience-based networks, Paradigm builds and manages centers of excellence based on demonstrated outcomes, ensuring accountability through bundled pricing and shared incentives. 
  • Cost certainty through risk transfer: By assuming financial risk through bundled pricing, Paradigm delivers cost certainty while driving better coordination, faster functional recovery, and reduced risk exposure. 

These elements work together to keep injured workers fully engaged and on track in the wake of a workplace musculoskeletal injury. Accurate, real-time information helps us develop and deliver risk assessments to claims teams for better insights into interdisciplinary care collaboration. Top providers are incentivized to coordinate around each case, contributing to effective functional recovery that gets people back to productive activity.  

For a system facing serious challenges and uncertainty, a focused care management approach prioritizing dynamic engagement offers certainty in outcomes that support healthy workforces and stable organizations.  

Learn more about HERO MSK and the results of engagement-driven care management. 

Sources

  1. OSHA 
  2. Paradigm industry benchmark data 
  3. Bouras, A., et al. Healthcare Utilization Fragmentation and Total Costs: Evidence from Administrative Data. MedRxiv reprint (2025).