The PMSI-Progressive deal is done.

The deal is done, and there are certainly lots of smiles in lots of places. The merger of two of the largest workers’ comp PBMs, finalized today, has implications far beyond the two companies, their employees and customers.  But we’ll get to that later.

For now, congratulations to Eileen Auen, HIG, Tommy Young and Emry Sisson, and the folks at Stone River and PMSI.

Eileen, Jay Krueger, and their team turned around a PMSI that was perilously close to irrelevancy.  A remarkable accomplishment, and one that generated what could be a record RoI for investor HIG.  While terms weren’t disclosed, there’s no doubt HIG’s investors more than pentupled (if that’s a word) their original investment.

Young and Sisson worked diligently to move past the third party biller image/business. Their leadership of Progressive, and the excellent work done by their clinical management and operational staff has, according to well-informed sources, led to satisfaction levels at key customers that exceeded those delivered under the legendary (yep, you’re old enough now that you’re a legend) Dave Bianconi.

Sources close to PMSI indicate a number of employees will benefit from the deal, as HIG spread the equity around.  That’s as it should be; without their efforts, it never would have happened.

The work comp PBM industry has matured greatly over the last few years, and this transaction is evidence of how far things have come.  I’d be remiss if I didn’t note that other PBMs have also made remarkable strides in a relatively short period, and continue to get better.  This is one of those industries where each competitor is constantly raising their game, pushing the others to do the same, with customers benefiting greatly.

If I sound a bit exuberant, it’s because I’m really pleased to see good people do well.

Don’t spend it all in one place.