In January, I wrote about how workers’ compensation has a cost-containment industrial complex that not only harms workers but also is a potential profit generator for groups like private-equity firms.
According to this link from The Wall Street Journal, a private-equity firm named Leonard Green & Partners LP recently submitted an offer to buy an IME company called Exam Works for $2.2 billion. Yes, that’s billion with a B.
“The insurance-defense-industrial-complex has become a multi-billion dollar enterprise,” as was noted on Aleksy Belcher Law Firm’s Facebook page earlier last week (Aleksy Belcher is a workers’ compensation plaintiff’s firm based in Chicago).
The Wall Street Journal article linked above talks about the hundreds of millions of dollars of revenue that Exam Works posted last year and also its purpose.
“It said it serves more than 6,000 clients globally, including property and casualty insurance carriers, law firms, third-party claim administrators and government agencies, helping them manage costs and enhance their risk-management and compliance processes,” according to The Wall Street Journal.
What this means for injured workers and their loved ones is that the big business and added bureaucracy of “cost-containment” may translate to even more profit at the expense of injured workers, going into the private-equity company’s pockets if the sale goes through.
The way IME companies are seen as potential profit centers for private-equity firms is one of the many reasons that if an IME – Independent Medical Exam – or DME – Defense Medical Exam – is ordered for an injured worker, that injured worker should seek the advice of an experienced workers’ compensation lawyer. Workers’ compensation lawyers advocate for injured workers and help them understand the workers’ compensation process, including IMEs, so the playing field of the workers’ compensation process might be a little more even. That way, cost containment, though not as profitable for private-equity firms, can give way to injured workers getting the medical treatment and compensation that they need to move on with their lives.
For those who do not subscribe to The Wall Street Journal, here’s a link from Reuters that includes information about the multi-billion dollar deal.