Rumor Has It…
The guaranteed MSA program so often touted by Coventry/First Health has finally come home to roost. According to sources inside Coventry, the firm reserved a million dollars to pay claims in fiscal 2008. As of the beginning of the second quarter, that fund is rumored to be exhausted. This begs the question: Will Coventry begin increasing its MSAs to prevent further losses, find loopholes to avoid paying guarantees, or fold up their MSA shop altogether? Recently, we have been besieged by resumes from former First Health employees looking for MSA work. Coventry recently lost their largest client, AIG, and are rumored to be losing Liberty Mutual as well. As a result, Coventry/First Health has laid off close to 20 people in their MSA department. It is also our understanding that both their Director of Operations and Director of Marketing have resigned. So what is going on over at Coventry/First Health? Have they finally realized that you can’t go from nowhere to #1 in a couple of years without suffering severe quality and operational problems? Your comments and questions are welcome.
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