Computer problem may delay workers' comp

RALEIGH -- Thousands of workers' compensation claims could be delayed by a computer malfunction that froze records at the N.C. Industrial Commission two weeks ago.

The commission oversees payments of millions of dollars in settlements to workers injured on the job, but officials said it's too early to say how many records -- if any -- might have been permanently lost after air conditioners went off, causing an aging computer system to overheat. In the worst case, six months of electronic records -- thousands -- could be lost. Still, commission Chairman B.E. "Buck" Lattimore downplayed the problem.

"I can't see anyone not being paid because of this," Lattimore said. "I'm not ready to say yet we've got a problem."

But since the computer shut down Dec. 1, commission workers have been scrambling to see how many records can be retrieved.

"I can't tell you what, if anything, is lost or, if it was lost, what is the possibility of getting it back and retrieving it," Lattimore said.

The commission handles about 66,000 claims annually. Last year, the total settlements were worth $1.2 billion. Most of the claims aren't contested, but about 9,000 disputed claims must be resolved through mediation, hearings or other procedures each year.

Information used in those procedures includes medical records from doctors and hospitals that treat injured workers and forms from workers filing claims. Those are among the records now missing.

Duplicate paper copies of the records are filed with the commission, and lawyers representing workers, employers and insurance companies also have copies.

Lattimore said officials and lawyers in cases scheduled to be heard in January already have all the filings and forms needed to decide the claims.

But there could be widespread delays deciding later claims, according to lawyers who appear before the commission.

"It would be an information disaster -- a digital tsunami -- if they can't get this computer system running again," said Raleigh lawyer George Lennon, who represents injured workers.

"It may mean people can't find out the status of their case; it may mean the commission can't properly prepare for hearings. It may mean information necessary to decide cases is lost," Lennon said. "We all have our fingers and toes crossed they can get the computer going again."

Status not yet clear

Lattimore said it might be early next week before consultants determine what information can be retrieved. Even though the computers shut down two weeks ago, the original software designer had gone out of business and it took time to find a company -- which turned out to be IBM -- with the know-how to get any information back and get the system running again.

The commission also has hired Active Data Services of Morrisville to scan in other claims being filed and reduce delays, Lattimore said. He didn't know how much the consultants would cost.

"I'm confident we'll keep percolating along," Lattimore said. "Everybody will keep getting paid and will have their hearings."