While no one from Medata will comment, word is the company has just implemented their bill review platform for AIG.
This has been very long in the making; we first heard rumors about the deal a couple years back. It was all over the room at last night’s Medata event; evidently AIG went live within the last week or so.
There are at least two significant implications.
First, bill review application firm Medata is a force to be reckoned with. Long a relatively small player, this relationship clearly moves them into the top tier with Xerox and Mitchell. No disrespect to Tristar, PMA, Amerisafe, and Medata’s other customers, but adding the 5 million plus bills flowing thru AIG is a whole different ballgame.
Second, AIG moved from Coventry. This is a major loss for Aetna/Coventry’s bill review business; with Liberty Mutual likely switching over to Xerox the writing is on the wall.
Expect Coventry to either make a major investment in bill review (highly unlikely) or outsource the application to a third party (highly likely).