Work comp TPAs; more consolidation

A well-placed industry exec shot me a note late last week re yet another TPA deal; Ohio-based Avizent will buy FARA, a Louisiana-based TPA.
Terms weren’t available, but there’s a bit of an outcry over the deal from some folks in Louisiana. Evidently FARA recently took over administration of the State’s Office of Risk Management as part of Gov Bobby Jindal’s privatization initiative. The deal was worth some $68 million to FARA (there was an increase of some $7 million that sparked heated comments by at least one LA legislator).
That increase seemed to fall just within the boundaries of the law, which enable an agency to increase funding up to 10% of the original contract value.
There are a couple other potential deals out there now; xChanging (formerly Cambridge) is rumored to be close to a sale to one of two very large TPAs.
I’d expect more to come in the not-too-distant future.
Much more.

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