According to the Division (Workers Comp) website it appears very clear that over less then ten years there has been a dramatic decrease in hearings and even hearing applications. There may well be many factors to explain this but the stats speak for themselves:
1997 : 12840 hearing applications were filed; actual hearings held were 1987
2006 : 9595 hearing applications were filed; actual hearings held were 1166
By the way the population of Colorado increased ten percent in the last ten years.