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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Aetna terminates work comp subsidiary leadership

Aetna is restructuring Aetna Workers Comp Access, Aetna's workers comp network subsidiary. Sources indicate AWCA's president,Pat Scullion, sales boss Tom Shivers, and operations head Shawn Fisher were terminated yesterday in what insiders are calling 'a complete surprise to them'.

AWCA has become the de facto network for Coventry Health's workers comp division, replacing Coventry's own proprietary network in many states. Since the finalization of the Coventry-Aetna deal over a year ago, new customers could only access AWCA through Coventry. This may have contributed to Aetna's decision to terminate the sub's leadership as AWCA Is essentially a service provider to Coventry. Aetna does have a workers comp PBM, but sources indicate it has a rather modest customer list.

Although the picture is not yet clear, more details should be forthcoming as meetings are being held today at Aetna's Hartford home office with the (now senior) AWCA staff. It is likely that the sub will not remain separate, instead report up through the existing health plan structure.

For more background on AWCA enter AWCA in the search box to the right on the blog home page.

Joseph Paduda is the principal of Health Strategy Associates.

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