The stock repurchase program, although a potential cause, is not likely to have had much of an impact as no shares were bought in the most recent quarter.

No, it looks like CorVel has done a better job of managing the cost of goods sold, as their gross margin has improved substantially. It is likely that the company is focusing less on low-margin case management and more on high margin networks and technology-driven niches such as bill review.

SG&A expenses were up considerably; if they had held consistent with past quarters the profit picture would have been even rosier.

While the network business may be looking good for now, CorVel's strategy of contracting with as many providers as possible at very low discounts may have run its course. The company recently lost one network relationship (albeit in a small jurisdiction) and sources indicate it will lose additional business.