Through Joe paduda
Friday, September 24, 2021 | 0
As we go through the list of Big, Biggest and Largest Worker Compensation Services Entities, we are now at the Single Service Provider level.
It will not take much time. Conduent is the market share leader in workers’ health bill review claims, followed by Mitchell and Medata. The company claims 50% of the market share, which seems fair, although the alleged “savings” of $ 16 billion is just plain absurd (as it likely reflects cuts below the fees charged, which we all know to be. are not “savings”).
Back then, there were a lot more invoice review apps and providers: PowerTrak, CompIQ, Smartadviser, Corporate Systems, and CS Stars (can’t remember the names of their apps).
Strataware is Conduent’s application. Stratacare – owner of Strataware – was acquired seven years ago when Xerox bought ISG Holdings (ISG had previously acquired Stratacare).
At the end of 2018, we did an investigation into the review of workers’ compensation invoices (Conduent’s predecessor did pretty well; Conduent, not so much). I also conducted BR surveys in 2009 and 2012.
There have been a lot of rumors that Conduent is potentially selling its BR app. The company has suffered from staff departures, ditched the CompIQ platform, and has had too many senior executives lately. While it remains the largest player in the worker invoice review request space, it is evident that Conduent has yet to figure out how to right the ship and put it on a stable and improved course.
The problems extend beyond reviewing the work invoice.
Overall, Conduent’s revenue declined fairly quickly, from $ 5.4 billion in 2018 to $ 4.2 billion in 2020. The review of the work bill is included in the “solutions” category. commercial health care ”, which saw a smaller decline from $ 445 million to $ 431 million during this period.
The CEO’s discussion of Conduent’s rather poor results is a classic example of corporate language:
Going forward, we will assess our diversified portfolio and apply a differentiated investment strategy to optimize, improve and expand our solutions as necessary based on our clients’ needs. We are focused on positioning Conduent for long-term success and creating value for customers and shareholders.
I don’t see Conduent adding to his portfolio of compositions for workers. On the contrary, Stratacare can be sold if / when the Conduent board decides that it is fed up with the poor performance and restructures the company / changes direction.
What does this mean to you?
The future of Strataware will be determined by bigger issues – and hopefully the resolution of those issues – at Conduent.
If / when Stratacare is sold, expect the other big players in worker compensation services to be the likely buyers.
Joseph Paduda is a co-owner of CompPharma, a consultancy focused on improving pharmacy workers’ compensation programs. This column is republished with her permission from her blog Managed Care Matters.