In no particular order, here’s what I’m hearing about goings-on at Coventry’s workers comp division.
Coventry has told several clients it is hiring dozens of staff to improve the quality of provider data; interestingly this message has gotten to some customers but not to all. This message was out there for a few months, and has been repeated recently – but again, not all have heard the same message. If this is indeed happening, kudos, albeit belated, to the company for recognizing that bad data not only frustrates customers but reduces Coventry’s own revenues and profits.
Much more recently there seems to be movement within the provider relations/contracting units to split work comp provider contracting out separately from the other lines of coverage – group, PPO, and Medicare. There had been some indication Cvty was considering just adding WC specific contracting staff, but this seems inconsistent with senior management’s push to restrain SG&A expenses. This is a little puzzling, as the other lines added much needed bargaining power to Coventry’s efforts to get attractive work comp rates from hospitals and other providers. If it is indeed splitting the negotiations, Coventry seems to be following through on CEO Allen Wise’s stated desire to emphasize its core business – small group HMO.
There are also indications that the company is getting ready for a re-organization of its work comp business, a re-org that will likely affect operations in the [correction] Burlington MA, Sacramento, and Dallas offices. No specific word on timing, but my guess is sooner rather than later.
There’s more swirling around, but these data points are the only ones that have been confirmed by multiple sources.
Mar
6
