SOURCE: Paradigm Management Services, LLC

August 19, 2008 06:00 ET

Milliman and Paradigm Management Services Release New Study; New Industry Standards Established for Return to Work Results in Catastrophic Claims

CONCORD, CA--(Marketwire - August 19, 2008) - In a first of its kind study performed by the nation's foremost actuarial and consulting firm, Milliman, Inc. on behalf of Paradigm Management Services, LLC, the nation's leading complex and catastrophic case management company, Paradigm outperformed comparable cases in Milliman's database in getting patients released to return to work (5X better), returned to work (5x better), and returned to work in full-duty (13x better).

According to Nathan Cope, M.D., a leading physician of head and spinal cord injuries and the Chief Medical Officer of Paradigm Management Services, "Our cases are the most complicated, risky and complex cases that exist so having unbiased experts confirm our industry leading results is not only gratifying for our company but also confirms what the thousands of patients we have worked with and our clients have known for years... that what we do works."

The study, conducted by Milliman consultants Robert Briscoe and Christine Fleming, selected a sample of 6% of completed Paradigm managed contracts from 1999-2006. This sample was compared to a similar set of outcome results in the Milliman database consisting of over 60,000 workers' compensation claims. These cases included traumatic brain injuries (TBI), spinal-cord injuries (SCI), multiple traumas, amputations and burns,

Specific results show:

--  60% of the Paradigm files had a release to return to work by the end
    of the Paradigm contract period, whereas only 13% of the comparable claims
    reviewed in the benchmark database had a release to return to work.
--  41% of the Paradigm files had actually returned to work by the end of
    the Paradigm contract period, whereas only 8% of the claims reviewed in the
    benchmark database had claimants who actually returned to work.
--  20% of the Paradigm files returned to work in full duty capacity
    compared to 1.5% of the benchmark claims.
--  Paradigm's experience saving insurers money was also independently
    verified by Milliman.  They estimated that Paradigm had delivered a savings
    of 36% over the life of the claim relative to the industry benchmark.

According to CEO Robert Fahlman, "The most important thing for us is improving the health of those that have been critically injured. We focus steadfastly on that and the rest follows. Patients get healthier faster, many more return to work, insurance companies save money, and everybody wins." He adds, "What this means for us is that we have a level of confidence in our results that allows us to put our fees on the line and guarantee our outcomes. No one does that in the industry. We have a unique model designed specifically to address the needs of those with highly complex and catastrophic injuries that yields much better results than traditional case management can offer these patients."

Founded in 1991, Paradigm Management Services, LLC, is the nation's leading provider of catastrophic and complex medical management services to the workers' compensation industry. Paradigm leads the industry in its ability to measurably improve medical outcomes and reduce costs with specialized techniques, data, and tools. Unlike traditional case management companies that are designed to deliver solutions solely for non-catastrophic cases, Paradigm's management model is designed to focus on the most medically complex and catastrophic injury types (including chronic pain, spinal cord injuries, traumatic brain injuries, amputations, wounds, severe burns and multiple traumas), and delivers 5x the industry average in helping these patients get healthy and back to work. The Milliman study indicated that Paradigm has a success rate of more than 99% in achieving or exceeding targeted outcomes for managed cases, and consistently generates 36% total cost savings for employers, insurers, and other stakeholders.

The full study can be reviewed on request. Interviews with key Paradigm and Milliman spokespeople can be arranged as well as Return to Work patient interviews and profiles.

Contact Information

  • Contact:
    Kelly Wilson
    (925) 677-4797