Broadspire News

BROADSPIRE SERVICES REPORTS SIGNIFICANT SAVINGS TO CUSTOMERS THROUGH EFFECTIVE CLAIM AND MEDICAL MANAGEMENT

2005 Results Show an Average of Six Work Days Saved per Claim

Plantation, Fla. (May 31, 2006) - Broadspire Services, a Platinum Equity company that is a premier provider of casualty claim, medical management and integrated disability management services, today announced the release of a study that demonstrates how effective claim and medical management can return healthy employees to work faster and generate significant savings for employers.

Each year since 2002, Broadspire's Medical Department has profiled the company's actual short-term disability durations against The Medical Disability Advisor (MDA) reference data on the average industry absence durations for common illnesses and injuries. In 2005, Broadspire showed shorter durations in 92 percent of the diagnoses it compared to MDA diagnoses in the 5th edition of the Advisor. "This means the durations experienced by Broadspire clients remained significantly lower than industry benchmarks," said Dr. Jacob Lazarovic, chief medical officer for the company.

On average, Broadspire saved customers six business days and $825 per short-term disability case in 2005, taking into account the average hourly wage of $16.37 reported for December 2005 by the Bureau of Labor and Statistics. Total cost savings to clients in 2005 were $60 million, based on Broadspire's performance relative to industry averages.

The Broadspire team approach to case management includes adjustors and senior nurse reviewers who are integrated with the company's medical department. Senior nurse reviewers provide claim adjustors with clinical feedback and guidance. Cases are triaged to more experienced staff based upon diagnosis and clinical complexity.

A team of more than 100 independently contracted physician review consultants across 35 specialties supports Broadspire's claims management process. Physician reviewers perform file reviews, hold peer-to-peer conferences, participate in clinical rounds, conduct educational in-services for Broadspire staff and contribute to guideline development. Physician review is fully integrated through referral criteria for controversial or complex diagnoses or durations beyond expected guidelines.

"Broadspire's expertise in medical management offers customers a measurable return on their investment," said Lazarovic. "Employees receive quality management of their medical care, which means they get appropriate treatment from providers and are able to return to health and productive work. Reduced durations and a return to work benefit both the employee and the company."

Broadspire compared short-term disability durations for 144 available MDA diagnoses. The MDA provides duration guidelines and expectations for case management purposes and submitted aggregate reference data based on 5 million disability cases. The reference data reflects actual experience across a spectrum of physical conditions, from a variety of industries and with varying levels of case management.

The company improved its disability durations in the four years the Medical Department has analyzed short-term disability data. In 2002, Broadspire showed shorter durations in 83 percent of diagnoses, compared to 92 percent in 2005. In 2005, the company demonstrated improvement in 53 percent of the durations profiled compared to 2004.

In April, Broadspire sold its disability business to Aetna, one of the nation's leading diversified health care benefits companies. However, the comprehensive and coordinated medical and case management services that contributed to the duration results remain with Broadspire and are applied to workers' compensation claims. Broadspire also continues to offer integrated disability management with Aetna and provides that company with medical management services.

Published by Reed Group LLC, The Medical Disability Advisor: Workplace Guidelines for Disability Duration, by Presley Reed, M.D., is the industry standard for evidence-based return to work guidelines and normative benchmarks for disability and workers' compensation cases.

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About Broadspire
Broadspire (www.choosebroadspire.com), a Platinum Equity company and third-party administrator, offers a broad array of customized casualty, medical management and integrated disability management services designed to increase employee productivity and contain costs. The services Broadspire offers include workers' compensation, auto and general liability claims management; medical and field care management, either integrated with casualty services or available on an unbundled basis; integrated workers' compensation and disability management programs; and risk and safety consulting. Broadspire is based in Plantation, Fla., with 1,900 employees throughout the United States.

About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specialized in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, software, telecommunications, logistics, manufacturing and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum has acquired more than 60 businesses with more than $12 billion in aggregate revenue at the time of acquisition.

Contact:
Kathy Bradley
954-693-1135
kbradley@choosebroadspire.com