United HealthGroup’s workers comp network business

United HealthGroup appears to be preparing to re-enter the workers compensation network business. Sources indicate that the initiative is housed within UHG’s Ingenix subsidiary; plans are not finalized but reports indicate this is all but a done deal.
Ingenix’ new CEO, Richard Anderson, is in the process of determining what to do and who is to do it. While Ingenix is well known for its Power-Trak, UCR databases, and other analytical and software applications, the property and casualty industry has been a relatively modest contributor to the company’s revenues.
For those relatively new to the WC network business, UHG was once a significant player in workers comp PPOs, owning both the Focus (now part of Concentra) and MetraComp (also part of Concentra) network businesses. UHG sold both about 8 years ago; neither was core to the company’s business at the time. Having been at UHG’s MetraComp subsidiary until 1996, I can attest to the company’s lack of interest in workers comp.
Which begs the question – why now? Is it because Aetna is making a major push? Has UHG management been swayed by Coventry’s positive statements about workers comp? (many Coventry executives are ex-UHG employees) Is this a push to diversify, as UHG’s group health and HMO plans are very much a mature industry?
All of the above?
I’ve discussed this at some length with WC network buyers, competitors, and others, and all welcome UHG’s entrance. However, those who have expertise in network development wonder if UHG has the persistence and focus it will take to be successful in this business. It will take years, a lot of dollars, and a long view that UHG has not been known for in the past.
There are many other challenges to be faced; if and when UHG announces anything publicly I’ll devote more time to this.
What does this mean for you?
Another sign that the HMO industry is maturing, and executives are looking for the gold dust that has fallen through the cracks in the measuring room floor.