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Dec
30

The rumors about Progressive and Stone River are true. Sort of.

For a couple weeks now there’s been a rumor that PBM Progressive Medical is acquiring third party biller Stone River.
There is a grain of truth in this.
In reality Stone Point Capital is acquiring Progressive which will operate as an independent company, reporting up thru a holding company structure to be called Progressive Enterprises. PE will include Stone River.
A highly placed source indicated current Progressive Chairman Dave Bianconi will remain with PE and has invested in the company. I’m betting Dave has a somewhat much greater ability to do that – or will when the deal closes. Dave is very well regarded in the comp world and well liked by all. I may be a bit biased as Dave is a friend as well, so I’m happy for him personally, as well as the rest of the Progressive folks.
As to how this will be perceived in the market, that’s a very good question. SR is not well liked by most payers. It remains to be seen if the new alliance will help Progressive add market share, a task that has been somewhat daunting of late for the 24-year old company.
The official announcement will be released tomorrow; like most it’s pretty obtuse and lacks any substantive details.


Joe Paduda is the principal of Health Strategy Associates

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A national consulting firm specializing in managed care for workers’ compensation, group health and auto, and health care cost containment. We serve insurers, employers and health care providers.

 

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