Fact Sheet

Industry Facts

(updated with most recent data available as of 8/21/08)

• In 2005, total national workers' compensation benefit payments were $55.3 billion or -1.4% from $56.1 billion in 2004, according to the National Academy of Social Insurance. The payments include $26.2 billion to providers of medical care and $29.1 billion in cash wage replacement benefits for injured workers.
  

• Total workers' compensation costs to employers in 2005 were $88.8 billion, up 2.3% from $86.8 billion in 2004, according to the National Academy of Social Insurance.

• Workers' Compensation direct premiums written decreased in 2007 by 12.6% to $52,033M according to the National Academy of Insurance Companies (NAIC).

• Net premiums written for workers compensation insurance in 2006 increased by 5.3% to 41.8 billion according to NAIC.

• In 2006, U.S. Bureau of Labor Statistics stated there were 4.1 million injuries and illnesses in private-industry workplaces, or 4.4 cases for every 100 full-time workers which was a decline from 4.6 cases in 2005.

• For 2006 California workers' compensation written premiums decreased 30.7% to 11.2 billion and earned premiums decreased 44.5% to 11.5 billion according to the National Association of Insurance Commissioners (NAIC).

• In California, workers' compensation benefits paid decreased to $10.9 billion in 2005, this is a -12.2% change from the 2004 level of $12.5 billion, according to the National Academy of Social Insurance.

• In 2007, gross written premiums in the California workers' compensation system decreased 23% from 16.3 billion in 2006 to 12.6 billion in 2007, according to the WCIRB.

• In 2005 for all states outside of California medical payments increased 4.1 percent and employer cost rose 6.5 percent according to NASI.

• During 2005, total workers' compensation payments in Pennsylvania increased 3.2% to $2.7 billion based upon data from National Academy of Social Insurance.

• In 2005, the Texas incidence rate was 3.6 injuries and illnesses per 100 full-time workers, while the national incidence rate was 4.6. This is the 16th consecutive year that the Texas rate has been lower than the U.S. rate. Texas rate information was obtained from a survey conducted by the Texas Workers' Compensation Commission in cooperation with the Bureau of Labor Statistics.

Business Facts

• Scott Green and Ron Taylor founded StrataCare® in early 1998.

• The company is privately held.

• StrataCare headquarters are located at 17838 Gillette Avenue, Irvine, CA 92614.

 

• StrataCare has regional sales offices located in Atlanta, Georgia; St. Louis, Missouri; and Irvine, California.

• The company provides traditional mail-in and/or electronically submitted bill review services for the workers' compensation payer community.

• Scott Green was the former President of Reviewco and has a background in sales, marketing, and computer leasing.

• Ron Taylor was an original founder of Reviewco and its Chief Information Officer.

• Prior to Reviewco, Ron Taylor is credited with developing the first bill review computer system for Medata in the late 1970's as well as writing Beech Street's computer programs in the early 1980's.

• The company addresses the marketplace's desire for software application options including onsite installation or ASP deployment.

• The product has remote login capabilities to connect client's remote users, such as managed care nurses to interface with the software.

• The software is targeted for the top 100 Workers' Compensation Insurance Companies, Third Party Administrators (TPA), Fortune 2000 employers, and Bill Review Companies.

• StrataWare® was the first bill review software developed using Thin Client Architecture.

• StrataWare® is a true Internet-based and browser-based application. No software other than Microsoft Internet Explorer 5.5 or higher is required on the desktop or laptop to run the application.

• Although there are competitors who claim to have Internet-based bill review software, they are in fact Internet-enabled systems using a third party or proprietary software to connect to the Internet.

• StrataCare's investment into developing StrataWare, a true Internet-based and browser-based software, instead of linking to a mainframe or Legacy system means clients will be able to take full advantage of all the new, more efficient and faster Internet-based technology available today and into the future.

• StrataWare's latest version has been written in Microsoft .NET technology.

• StrataWare® was unveiled at the National Workers' Compensation & Disability Management Conference and Exhibit in Chicago on December 4-5, 2000.

• The public debut of the StrataWare eReview™ system took place at the National Workers' Compensation and Disability Conference at McCormick Place in Chicago, IL on November 13-14, 2002.

• StrataCare announced StrataCare Scripts™ at the 41st RIMS Annual Conference and Exhibition in Chicago at McCormick Place on April 6-10, 2003.

• Sheila Garcia is Vice President, Operations. Her responsibilities span client services, product development, training and quality assurance. Sheila has over 15 years experience in bill review and cost containment management.

• Doreen Corwin, Director of Network Affairs is responsible for managing existing networks and dramatically expanding StrataCare's PPO coverage to facilitate the growth of the CareSolutions National Bill Review Service Center and the delivery of StrataWare software. Her background includes extensive experience in the Workers' Compensation and PPO fields.

• Michael Lundberg is Vice President, Business Development and has more than 20 years in sales development and a wealth of industry knowledge.

• In April of 2004 StrataCare acquired GenSource, a Claims and Risk Management Software Company.

• Risk and Insurance Magazine published an article on September 1, 2004 on industry mergers and acquisitions describing StrataCare as "a quintessential success story in the bill review space."

• StrataCare announces ProviderKey™, a web-based tool for managing use of multiple medical provider networks, on June 6, 2005.

• StrataCare achieves Microsoft Gold Certified Partner status in August of 2005.

• November 2006, Michael Josephs is Vice President, Production Technology and has a diverse background in technology inception, creation and support and is responsible for leading the production technology teams.

• StrataCare announces the official launch of PathWays™, a workflow technology solution for workers' compensation bill routing, at the 15th Annual National Workers' Compensation and Disability Conference & Expo at Mandalay Bay in Las Vegas, NV on November 14, 2006.

• MedAvant and StrataCare Announce Strategic Workers' Compensation e-Billing Partnership and StrataCare’s workers’ compensation eBilling Enterprise Solution.

• January 2008 Product Management and Project Management departments combine into Product Solutions Group.

• Bob McCaffrey joins StrataCare in February in the newly created position of Chief Sales and Account Officer.

• April 2008 founder and CIO, Ron Taylor retires and remains on Board of Directors with Michael Josephs promoted to CIO.

• The end of April 2008 StrataCare relocates to a 50,000 square foot facility in Irvine, CA.

• Additional business and product developments will be announced on an ongoing basis with media news releases distributed as well.