Joseph Paduda's weblog on managed care for group health, workers compensation & auto insurance, covering health care cost containment, health policy, health research, and medical news for insurers, employers, and healthcare providers.

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Cavanaugh leaving LWCC

The Louisiana Workers Compensation Corp has a new leader; long-time CEO Steve Cavanaugh has left to take a position with a new workers comp start up in Dallas. Cavanaugh's replacement will be LWCC's current COO, Kristen Wall.

This is more than the usual transition - Cavanaugh headed up LWCC and was indirectly responsible for the innovative work the company did in provider network management, an approach that has proven to deliver results significantly better than industry standards.

LWCC's results were driven in large part by their use of a relatively small network of occupational medicine physicians, chosen for their expertise in disability management and demonstrated outcomes. While some of the physicians provided care at a discount, all received a payment of around $250 to manage each case.

Cavanaugh did not provide any details on his new venture; the fact that his new firm hired someone with his track record bodes well for their results.

Joseph Paduda is the principal of Health Strategy Associates.

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