Cash for Sedgwick, PMSI: more industry moves coming, some experts say.Sedgwiek CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. , the Memphis, Tenn.-based U.S. claims administrator, pulled off something of a coup in June with the purchase by Minneapolis-based UnitedHealth Group UnitedHealth Group Incorporated NYSE: UNH is a managed health care company. It is the parent of United Healthcare, one of the largest health insurers in the U.S. It was created in 1977, as UnitedHealthCare Corporation (it renamed itself in 1998), but traces its origin to a of a portion of the largest investor's stake in the company for $54 million. Meanwhile, after months of seeking a buyer, PMSI PMSI Purchase-Money Security Interest (generally a lien resulting from a purchase such as a car loan) PMSI Physician Micro Systems, Inc. PMSI Programme de Médicalisation des Systèmes d'Information Hospitaliers PMSI Popular Mortgage Servicing, Inc. , the Tampa, Fla.-based workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. pharmacy benefits manager, found HIG HIG Human immunoglobulin, see there Capital. The Miami-based private equity investment fund agreed to pay AmerisourceBergen, the large wholesale pharmacy distributor, $40 million for PMSI plus a contingency fee contingency fee Law & medicine An attorney fee based on a percentage of the money recovered in a lawsuit up to $10 million. AmerisoureeBergen announced it would take a charge of $222 million representing its loss on its investment in the PMSI subsidiary. Throughout the industry there continues to be talk of consolidation among the largest third-party administrators and the smaller, regional TPAs. The Sedgwick/UnitedHealth deal followed an announcement late last year that the two companies had agreed to develop a program for integrating the servicing of employer-sponsored disability, group medical, workers' compensation, and leave and absence programs. "While we were developing our integrated health and wellness workers' comp model, we came to realize that the two organizations shared a lot in common, in particular the desire to bring innovation to the industry," said David North, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Sedgwick CMS. UnitedHealth is a major provider of group health coverage. North said the new, integrated product may begin to rollout by the end of the year, adding that the marketplace appears to want a solution to the total scope of health-related services. He also acknowledged that the partnership with UnitedHealth offers Sedgwick the possibility to invest in developing its own, independent national workers' comp managed care medical network. Currently, that market is dominated by Coventry Health with its acquisition of the workers' comp managed care network of Concentra and a subsequent partnership with Aetna's medical disability network. But, North added, nothing is currently in the works. Meanwhile PMSI pledged that when the sale is final, the company will be able to gain momentum, enhance program efficiencies and expand its service portfolio. |
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