Actuarial Study Shows CHOICE Medical Management Services Reduces Total Loss Costs for Workers' Compensation Programs.

Business Editors/Health/Medical Writers

TAMPA, Fla.--(BUSINESS WIRE)--Feb. 24, 2004

An analysis of workers' compensation claims shows that the medical costs of claims managed by CHOICE Medical Management Services, LLC were 30 percent lower than the industry average. The study also showed that indemnity costs were six percent below average and allocated loss expenses were more than 20 percent less. The total loss cost on claims managed by CHOICE was more than 20 percent less than comparable claims state-wide.

An independent actuarial firm, Preferred Insurance Capital Consultants, LLC based in Boca Raton, Fla., reviewed 9,685 claims from a large workers' compensation insurance program managed through CHOICE Medical Management Services. The CHOICE program consists of a full-service, integrated Return-to-Work program, which includes an expert workers' compensation network, case management services, disability programs, medical bill review along with price management and return-to-work strategies. The average claim costs were developed to ultimate, using industry-recognized actuarial techniques, and compared to data on all Florida claims reported by National Council on Compensation Insurance (NCCI) during the same period. The program managed by CHOICE was representative of the employer marketplace in Florida and the mix of expected injuries for the program managed by CHOICE was comparable to the mix state-wide.

"The study validates our unique care management strategy," said Tom Barrett, president and CEO of CHOICE. "The medical costs of this program are 30 percent lower because CHOICE actively pursues and recruits experienced physicians and we reimburse them appropriately. We have always known that the combination of the right doctors, a strong return-to-work program, and the use of other care management expertise would reduce the cost of claims, and now we have hard numbers to prove it. It is important to note that while this study shows CHOICE provided tremendous savings in medical costs, both indemnity and allocated loss expenses were also reduced. This validates CHOICE's distinct focus on a bottom-line savings model as opposed to the traditional percentage of savings model."

Based in Tampa, Fla., CHOICE Medical Management Services, LLC is a full-service, fully integrated workers' compensation care management organization built upon proven cost-saving, return-to-work strategies that deliver tangible, measurable results. CHOICE serves insurance carriers, third-party administrators, municipalities, and large employers. For more information, contact Yvonne Halvaei, Marketing Manager at 813-282-9801 or [e-mail] or visit http://www.choicemedicalmgt.com.