Insight, analysis & opinion from Joe Paduda

Oct
26

Coventry work comp’s Q3 numbers are out

And they’re rather middling...

Q3 workers comp revenues were $188 million, down 3.6 percent from Q2’s $195 million and about the same from Q3 2011.  While the loss of ESIS’ pharmacy and other business in January was significant, Coventry has mitigated much of the loss with “client expansion and new sales.”

With the acquisition of Coventry (the entire company, not just the work comp division) by Aetna in the offing, we can expect more noise about the coming sale of the work comp division – but it’s just noise.

It isn’t going to happen.

Recall Aetna’s CFO Joe Zubretsky’s positive statements about work comp, and there’s this from a colleague with direct contact with Aetna and Coventry

“this [the CFO’s statement] is very consistent with Aetna’s outreach to us and a few other WC TPAs early this year to find partners for integrated plans. They don’t want to get into the WC TPA business (good for them) but they want to have good integration and smooth operating links with a few TPAs with whom they can put together WC/FMLA/AM/STD/LTD plans– and maybe loop in the healthcare as well.”


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Joe Paduda is the principal of Health Strategy Associates

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