Here’s my quick take on other interesting/important news of the week…
There’s been a good bit of chatter about and fallout from Apax’ acquisition of Genex.
Yes, the specialty networks (NSI and MDN) will be part of OneCall, while the case management and bill review will be operated separately. HOWEVER, a single Apax fund purchased all parts of Genex, so the financial ownership is the same. Is it possible that Genex and OCCM will operate independently? Highly doubtful; big investment firms don’t invest hundreds of millions of dollars then ignore opportunities to drive revenue to their other companies.
On a personnel matter, I’ve been inundated with LinkedIn requests and other contacts from current Genex and NSI staff. According to two individuals, they’ve been asked to sign non-competes by early next week. If they don’t, they have been told they will be terminated. Ouch.
NCCI published an excellent review of the underwriting cycle, one that is a lot more worthy of a read than that trashy novel tucked into the beach bag.
The on shoring movement, where manufacturers are moving their operations back to North America, appears to be gathering momentum, Big potential impact on workers’ comp, altho it is important to remember that a) injury rates and severity in manufacturing have declined precipitously and b) a lot of the returning work is going to Mexico.
The rapidly-changing hospital market is dramatically affecting prices, costs, and utilization. Two excellent pieces in Health Affairs dig into this in detail; the link takes you to one.
Lots more, but time to get to work!
Good information. Keep it up!
The Network Synergy Group (NSG) acquisition by One Call is far more serious than is being communicated. The acquisition by One Call to integrate NSG under Align has dealt a serious blow to employers and those payors who actually care about making an impact on WC costs. The strategy, I am sure, was to eliminate a rising player in PT expense control to protect a less than effective therapy network model and preserve revenue. It all suggests an unfair trade practice but will remain far below the Justice’s department less than watchful eye. Very sad.
From an anonymous reader:
Oh my goodness is all I can say! What happened to choices…freedom to choose providers to make for a competative marketplace. Before you know it, one call will own it all. For the small companies trying to compete, and offering the customer service element, makes it difficult in negotiating pricing. The ever so large one call and their revenue sharing with bean counters will put companies eventually in a very difficult position. At some point, they will dictate prices to carriers and who profits then…. Come on people, look at the big picture. If all those employees sign non competes, who is left to work for other companies? I believe they call this a monopoly.
I have been in the marketplace for 29 years and am concerned and shocked to see before my eyes what is happening.
Non competes don’t really hold up in California. Sales people have gone through this many times in different industries. They cannot stop your livelihood.
Oh, but yes, yes they can indeed prevent your livelihood. CA is one of the very few states that is so staunch with the non-enforcement of these “contracts.” Most others will take each on a case by case basis. Problems arise for the ex-employee (likely with years of experience in the landscape of, let’s say, WC) when the former employer sues them for breaching the one-sided document. The cost is way to high for most healthily budgeted individuals to take on, and even if there is no breach, the fight and money is just too risky. Companies like OCCM merge and have acquisitions, force seasoned employees to sign non-competes with little to no consideration for signing, then begin the layoffs. It’s a sure fire way to limit competitive knowledge from escaping the walls of the enterprise. And those walls are high. Surrounded by threats, of course. It really is a shame. The company One Call once was…is no longer.