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Examworks has bought MedAllocators/ASN

It’s official – in a press release that hit the wire just after 5 pm EST, Examworks announced that they have bought MedAllocators for $80 million.  Cash.

That’s a pretty hefty price, as MA’s revenues were less than half that amount.

It’s going to be a great weekend for Ken Loffredo; he almost certainly got a big payday (and well deserved); he will also be running ExamWorks Clinical Solutions, a new division at Exam.  Ken was smart enough to take his payout in cash, rather than stock.  Exam’s management folks recently sold off a big chunk of their holdings, and the stock dropped rather dramatically at right about the same time.

The weekend will be a pretty crappy one for many MedAllocators/ASN workers.  Word has come from several sources that the layoffs have already begun, and they may have started at Solomon Associates, the Pennsylvania IME company also bought by Exam today.

 Yet another big company getting even bigger.  Seems that’s a trend these days…

7 thoughts on “Examworks has bought MedAllocators/ASN”

  1. Joe,

    It’s called “vertical integration”. Sounds like something from a La Quinta commercial.

  2. Unfortunately the layoffs began today at Gould & Lamb as well, along with the announcement of the company name (Examworks Clinical Solutions) and leadership (Ken Loffredo) change. It appears Examworks Clinical Solutions represents the beginning of the first merger of national MSA companies (MedAllocators/Gould & Lamb) in the history of the space. Congratulations to Ken Loffredo and the MedAllocators team on the strong value and even more importantly, firm retention of the leadership role during the ‘merger’.

  3. The MSP compliance industry is ripe for consolidation. It is a shrinking market with more carriers and TPAs starting to bring the services in house.

  4. I am not surprised by yet another huge win for Ken Loffredo. I have known him for several decades both as a competitor in a prior life and more recent history as a colleague during my tenure at Coventry and Concentra. His strengths are many, great product knowledge,solid relationship developer and a no BS sales style. He has earned his solid reputation and kudos for his ability to spin off these companies for such a large value!

  5. The word “on the vine” is that MagnaCare was the big loser here; they went hard at MA, had an agreement in principle but the new real management of MagnaCare changed the terms at the eleventh hour and ExamWorks richer deal prevailed, despite the close relationships between MA and MC’s nominal management

  6. Joe,

    The carefully placed “may” does not lessen the hurtful damage to personal lives. Your June 6th article refers to layoffs that may have already begun at Solomon. Today is July 31st and no one has been laid off or fired. My opinion is that unfounded rumors taint whatever facts may appear in your article(s).

    1. Joe – thanks for the note.

      I don’t know you or your sources; as I noted I have heard from several individuals involved who provided that information.

      As far as Exam goes, one has only to look at the history of their acquisitions to understand they do not buy companies and keep all staff. That does not make them any different from other acquirers; “synergies” are part of the financial calculus and those synergies are most often predicated on consolidating duplicate staff functions.

      Which leads to layoffs.

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Joe Paduda is the principal of Health Strategy Associates




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