Insight, analysis & opinion from Joe Paduda
CorVel continues to intrigue. After my last post/prognostication about the potential for CorVel to be on Coventry’s acquisitions-we’re-thinking-about list, trading volume jumped by 40%. I’m not claiming a causal relationship, just a statistical one.
Since then, the average volume has been six times what it was earlier in the year. The stock price itself has seen a similar trajectory, with CorVel now trading close to $60 a share, almost four times its 52 week low.
There’s been a lot of news, non-news, and rumor about deals and transactions and changes in the work comp managed care industry floating around out there. As usual, for some of the rumors there’s a little basis in fact and none at all for others. Here’s a compendium of the more solid stuff.
Tommy Noe is going to be behind bars till 2026. At least that’s how an Ohio judge sees him spending his time for the next 20 years.
Steve Cavanaugh, former, and highly-respected head of the Louisiana Workers Comp Corp, passed away last week.
While I only know Mr. Cavanaugh by reputation, by all accounts he was an insightful, innovative, and effective leader. After leaving the LWCC, Cavanaugh had begun working to build a new insurance carrier in Texas. He succumbed to pancreatic cancer last week at the age of 55.
Thanks to Workers Comp Executive for the notice.
First Health has a leader for the workers comp business. After a search lasting almost two years, Coventry found the new leader right inside the parent company.
Jim McGarry will be the new President of the Workers Comp division, effectiv 11/17/06. His COO will be Steve Rodriguez, ex-SVP and head claims exec at CNA. McGarry, who is located in Irving Texas, is reporting to CEO and Chairman Dale Wolf.
More details to follow…
CorVel’s stock has hit the stratosphere, giving the company a market cap of over half a billion dollars, and a PE of 37. The stock’s price has more than tripled in the last year, and trading has been particularly heavy over the past few weeks, with volumes up substantially over the last two months.
I just can’t stop myself.
The Ohio Bureau of Workers Comp scandal is so big, so juicy, so full of great stories and bizarre twists and turns and corruption and lying and deceit and, well, we could be talking mini-series here!
The latest news is Tommy Noe, coin dealer, real estate developer, and scam artist extraordinaire, will not be needing either of his waterfront homes, at least not for ten years. Tommy may have thought he would be living in luxury courtesy of the state; while he will be living off the taxpayers, the accomodations will be somewhat more spartan.
It could have been worse; they could have re-opened Alcatraz for him and his co-conspirators…
Cypress Care, one of the leading Workers Comp Pharmacy Benefit Management firms, has just announced the company has received a “strategic investment” from Dallas-based Brazos Private Equity Partners. The company has also added David George (former President of AdvancePCS) to the management staff; George will be taking over the CEO spot from co-founder Hank Datelle and has also made an investment in Cypress Care.
The press release contains the typical comments about all parties’ delight at the deal and enthusiasm for the future. As one who has been directly involved, I can attest that in this case, the PR has it right. David George is a highly experienced and very well respected managed care pro with stints at United Healthcare and on the Board of Concentra, Inc. Bart Hester, a former colleague of George’s at AdvancePCS will be joining Cypress as EVP Account Management and Strategy; the rest of the Cypress senior management team including co-founder Lisa Datelle and President Marc Datelle are all staying with the company.
Note – Cypress Care is a Health Strategy Associates consulting client an dsponsors our annual Survey of Prescription Drug Management in Workers Compensation.
Patient satisfaction, return to work, and other outcomes were the subject of another presentation at WCRI. I can’t provide details as the actual material is embargo’ed, but here are the key points.
OK, I know a lot of readers are not exactly holding their collective breath waiting for more updates from the WCRI conference…but a few are. (hard to believe, I know…)
So, for those eagerly waiting, here’s the latest.
A panel discussed the results of the reforms to the California WC system. Overall, the results have been quite favorable wiith rates declining, and better control over medical care and costs.
