CorVel has carved out a niche providing medical cost containment for US workers' compensation programs, auto insurers, and group health plans. CorVel helps insurers, third-party administrators, and self-insured employers keep down costs associated with workers' compensation and other medical claims and to get employees back on the job as soon as is practicable. Among other things, CorVel reviews medical bills to make sure they are in line with state fee schedules, using its automated online MedCheck software. It also maintains a health provider network and provides case management and vocational rehabilitation services. Clients access CorVel's range of services through its CareMC web portal.
CorVel operates through a network of branch offices to provide customer service to its 2,000 clients on a localized basis. Its provider network consists of 750,000 health care practices across the US.
CorVel divides its business into two segments: network solutions and patient management services. Its network solutions encompass its risk management solutions (fee auditing, bill review, utilization review, and independent exams) for workers' compensation, auto, and group health policy providers. It also manages the company's CorCare preferred provider network and CareIQ directed care network (specialist facilities including imaging and physical therapy centers); these networks are licensed to insurance clients for use under their respective insurance policies. Meanwhile, CorVel's patient management services focus on injured employees, providing case managers who monitor employees' recovery and their use of health care services.
Sales and Marketing
CorVel focuses on national account marketing, conducting sales through its account executives located in its primary geographic markets.
Its organic and acquisitive expansion activities have allowed CorVel to experience modest revenue and income growth over the years, which in turn helps fund future expansion efforts. Its revenues climbed 8% in 2012 to some $413 million in 2012, paired with a net income rise of 6% to $26 million. Growth in 2012 was due to an increase in claims administration customers within the patient management segment, as well as growth in the pharmacy service operations of the network solutions segment.
As national health care costs continue to soar and the demand for cost-control programs increases, the company is working to make its offerings more comprehensive. Internal growth efforts include the broadening of CorVel's managed care and directed care networks, as well as its patient case management provisions. It has also upgraded its claims processing capabilities through acquisitions and internal software and infrastructure enhancements.
Director Jeffrey Michael owns about 35% of the company through Corstar Holdings, which is owned by a Michael family trust. Chairman Gordon Clemons Sr. owns about 10% of the company. – less