Companies that outsource subrogation efforts (partial or complete) inevitably see solutions to immediate problems (e.g., too much fixed overhead) as well as set forth a plan to reap long-term financial benefits (e.g., unearthing hidden revenue streams). Outsourcing subrogation with Praxis Consulting has reliable, replicable and tangible benefits, such as: • Near-immediate reduction in the company’s fixed costs by converting fixed expenses to a variable cost structure. This can be especially important during periods of fluctuating or declining volumes. • Maximized recovery results. • An average of >15% collision recoveries to collision paid loss. • Savings on manpower and training costs • The transfer of ULAE from expense cost to loss costs, causing a substantial reduction in ULAE • The minimization of staff production and morale issues due to fluctuating workloads. • Enabling the company to redirect energy and resources into the core business, while increasing recovery results.
Companies have internal subrogation departments which specifically identify and recover subrogation dollars. Praxis focuses on purchasing blocks of these “closed files” which have revenue potential, but were never identified or recovered through internal recovery efforts. Many companies fall behind on achieving internal claims recovery goals. By selling closed subrogation claims to an outside recovery firm, companies can benefit from the opportunity to accelerate claims recovery with maximum efficiency. Purchase prices are negotiated against the immediate cash which can be generated and the ability to increase net income. After factoring the costs and the related risks associated with collection, a cash payment presents an increased value to companies. More importantly, Praxis can provide companies in financial difficulty with liquid funds for an otherwise unrealizable asset.
Identifying missed Workers’ Compensation recovery is a challenge for both logistical and economic reasons. Despite significant recovery potential, these opportunities are frequently not pursued due to these challenges. Partnering with Praxis Consulting, and using our Database Search and Recovery Services, companies can overcome these challenges and benefit from otherwise missed recovery opportunities. Praxis Consulting utilizes a proprietary database comprising millions of court actions nationwide to identify lawsuit matches to those injured workers, providing the basis for recovery. Our ability to match injured workers with any related lawsuits , and then pursue these cases to recover some, or all, of the benefits previously paid by our clients, is unique to Praxis Consulting. As a major player in the workers’ compensation recovery space, Praxis Consulting has the experience, expertise and capacity to handle all types of recovery projects, both large and small. At Praxis Consulting, we believe industry leading results are achieved through the proper balance of people, process, and technology. Approach: • Company provides claim data and records access to Praxis • Initial match is performed using the Praxis proprietary database • Matched claims are validated • Parties are placed on notice • Lawsuits are continuously monitored • Settlements are negotiated and related funds are recovered by Praxis • Praxis remits net recovered funds to Company
Companies looking to increase net income turn to Praxis to uncover overlooked or hidden subrogation potential, and retrieve these assets from closed files. Through our “Subro Closed File Review,” Praxis has built a reputation based on the ability to find and recover these assets, therefore increasing the company’s profitability. Why outsource closed file reviews? Our claims department can handle it. Adjusters have many responsibilities during the claims cycle — from determining coverage to calculating damages — and subrogation can sometimes take a backseat to these important functions. Also, when carriers don’t establish subrogation objectives for their claims adjusters, the adjusters will, understandably, tend to focus on more heavily-weighted competencies.
Praxis is able to generate millions of dollars each year through arbitration management. We have the experience — over 6,000 arbitration claims initiated and millions of dollars collected — and we know when to file and what the process requires to be successful. Companies lose millions of dollars each year in collectable subrogation potential simply because they don't use arbitration correctly. Arbitration is a highly-specialized skill, and one that offers the opportunity for significant recoveries on disputed claims, as well as prevent payout on third-party counter claims. Because the number of arbitrations to file, or respond to, can fluctuate, outsourcing converts the fixed cost of internal staff to a variable cost. Please contact us if you believe your company could benefit from a comprehensive subrogation review and analysis.