SOURCE: Paradigm Management Services, LLC

Paradigm Management Services, LLC

April 12, 2011 10:00 ET

Paradigm Management Services Reduces the Cost of Pain Cases by 40.9%

New Study by Milliman, Inc., Confirms Reductions in Lifetime Cost Projections

WALNUT CREEK, CA--(Marketwire - Apr 12, 2011) - Recent independent analysis by Milliman, Inc., one of the world's largest actuarial and consulting firms, estimates that Paradigm Management Services reduces lifetime cost projections by 40.9% for pain management claims.

The study included a Milliman pre- and post-medical and indemnity cost projection on a random sample of pain cases managed by Paradigm from 2004 through 2010. The reductions were the result of decreases in a number of cost elements, including physician services, pharmaceutical expenses, surgical interventions and future indemnity benefits.

"The study confirms that Paradigm's Systematic Care Management(SM) methodology provides great value for pain cases which are beyond the acute recovery stage and still generating significant dysfunction for the injured person and medical costs for the payor," said Stuart Sweetser, Senior Vice President of Pain Clinical Operations. "With this evidence of financial savings, we can paint a complete picture of our program that also achieves outstanding medical results in areas of returning to work and ceasing narcotic usage."

Milliman reviewed 50 randomly selected Paradigm cases focusing specifically on past and current diagnoses, all previous hospitalizations, surgical procedures, rehabilitation interventions, current medications, any hours required for attendant or nursing care, physician specialists providing care, functional independence measure scores and psychosocial data. These complex pain cases demonstrated a significant reduction in total estimated future costs from the beginning to the end of the contract. This reduction of 40.9% in non-escalated medical and indemnity costs is even higher at 43.1% when future cost inflation is taken into account.

"We've always known that our approach to pain management led to better medical outcomes for the injured person," said Chief Medical Officer Albert E. Holt, IV, MD, "and now we see that these results generate financial savings. These outstanding financial outcomes represent personal validation for the Paradigm clinical experts who work to improve the lives of their patients every day."

About Paradigm Management Services, LLC

Paradigm Management Services provides acute and ongoing catastrophic and complex case management services for traumatic brain injuries, spinal cord injuries, amputations, burns, wounds and chronic pain. As the nation's leading provider of complex and catastrophic medical management in the workers' compensation industry, Paradigm achieves 5x better medical outcomes and lowers total costs by 36%. Paradigm accomplishes this by bringing together nationally recognized doctors and specialists, the best network of care facilities in the country, and nearly 20 years of clinical data to guide decisions. Case In Point Magazine recently presented Paradigm with the organization's highest honor, a 2010 Case In Point Platinum Award for the nation's best Workers' Compensation Case Management Program. For more information, visit

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