CRVL » Topics » Revenue

These excerpts taken from the CRVL 10-K filed Jun 12, 2009.
Revenue
 
The Company derives its revenues from providing patient management and network solutions services to payors of workers’ compensation benefits, auto insurance claims and health insurance benefits. Patient management services include claims administration, utilization review, medical case management and vocational rehabilitation. Network solutions revenues include fee schedule auditing, hospital bill auditing, independent medical examinations, diagnostic imaging review services and preferred provider referral services.


37


Table of Contents

Change in Revenue
 
Fiscal 2009 Compared to Fiscal 2008
 
Revenues increased by 3%, to $310 million in fiscal 2009, from $302 million in fiscal 2008, an increase of $8 million. The increase was primarily due to an increase in revenue for the Company’s Enterprise Comp and CareIQ services. Patient management revenues, which encompass Enterprise Comp services, increased $6 million, or 4.6%, to $134 million in fiscal 2009. The Company’s network solutions services revenue, which include CareIQ services, increased $2 million, or 1.3%, to $176 million in fiscal 2009.
 
The Company’s limited revenue increase reflects the challenging market conditions the Company has experienced during the past few years. The decrease in the nation’s manufacturing employment levels, which has helped lead to a decline in national workers’ compensation claims, considerable price competition in a flat-to-declining overall market, an increase in competition from both larger and smaller competitors, changes and the potential changes in state workers’ compensation and auto managed care laws which can reduce demand for the Company’s services, have created an environment where revenue and margin growth is more difficult to attain and where revenue growth is uncertain. Additionally, the Company’s technology and preferred provider network competes against other companies, some of which have greater resources available. Also, some customers may handle their managed care services in-house and may reduce the amount of services which are outsourced to managed care companies such as CorVel.
 
The continued softness in the national labor market, especially the manufacturing sector of the economy, has caused a reduction in the overall claims volume and a reduction in case management and bill review volume. The Company believes that referral volume in patient management services and bill review volume in network solutions will continue to reflect just nominal growth until there is growth in the number of work related injuries and workers’ compensation related claims.
 
Fiscal 2008 Compared to Fiscal 2007
 
Revenues increased by 10% to $302 million in fiscal 2008, from $275 million in fiscal 2007, an increase of $27 million. The increase was primarily due to the acquisition of the assets of Hazelrigg Risk Management Services in January 2007 and the acquisition of the stock of Schaffer in June 2007, as described in the Notes to our Consolidated Financial Statements. These businesses both provide claims processing services to the property and casualty industry. These acquisitions were the primary source of growth in the Company’s patient management services. Excluding these acquisitions of Hazelrigg and Schaffer, the Company’s revenues would have only increased by approximately 1% in fiscal 2008 compared to fiscal 2007. Patient management revenues increased $21 million, or 19.3%, to $128 million in fiscal 2008. The Company’s network solutions services revenue increased $7 million, or 3.9%, to $174 million in fiscal 2008. This increase was primarily due to an increase in the volume of out-of-network bills reviewed which generate greater revenue per bill and an increase in revenue per provider bill reviewed due to increased savings per bill for the Company’s customers.
 
Revenue
 
The Company derives its revenues from providing patient management and network solutions services to payors of workers’ compensation benefits, auto insurance claims and health insurance benefits. Patient management services include claims administration, utilization review, medical case management and vocational rehabilitation. Network solutions revenues include fee schedule auditing, hospital bill auditing, independent medical examinations, diagnostic imaging review services and preferred provider referral services.


37


Table of Contents

Change in Revenue
 
Fiscal 2009 Compared to Fiscal 2008
 
Revenues increased by 3%, to $310 million in fiscal 2009, from $302 million in fiscal 2008, an increase of $8 million. The increase was primarily due to an increase in revenue for the Company’s Enterprise Comp and CareIQ services. Patient management revenues, which encompass Enterprise Comp services, increased $6 million, or 4.6%, to $134 million in fiscal 2009. The Company’s network solutions services revenue, which include CareIQ services, increased $2 million, or 1.3%, to $176 million in fiscal 2009.
 
The Company’s limited revenue increase reflects the challenging market conditions the Company has experienced during the past few years. The decrease in the nation’s manufacturing employment levels, which has helped lead to a decline in national workers’ compensation claims, considerable price competition in a flat-to-declining overall market, an increase in competition from both larger and smaller competitors, changes and the potential changes in state workers’ compensation and auto managed care laws which can reduce demand for the Company’s services, have created an environment where revenue and margin growth is more difficult to attain and where revenue growth is uncertain. Additionally, the Company’s technology and preferred provider network competes against other companies, some of which have greater resources available. Also, some customers may handle their managed care services in-house and may reduce the amount of services which are outsourced to managed care companies such as CorVel.
 
The continued softness in the national labor market, especially the manufacturing sector of the economy, has caused a reduction in the overall claims volume and a reduction in case management and bill review volume. The Company believes that referral volume in patient management services and bill review volume in network solutions will continue to reflect just nominal growth until there is growth in the number of work related injuries and workers’ compensation related claims.
 
Fiscal 2008 Compared to Fiscal 2007
 
Revenues increased by 10% to $302 million in fiscal 2008, from $275 million in fiscal 2007, an increase of $27 million. The increase was primarily due to the acquisition of the assets of Hazelrigg Risk Management Services in January 2007 and the acquisition of the stock of Schaffer in June 2007, as described in the Notes to our Consolidated Financial Statements. These businesses both provide claims processing services to the property and casualty industry. These acquisitions were the primary source of growth in the Company’s patient management services. Excluding these acquisitions of Hazelrigg and Schaffer, the Company’s revenues would have only increased by approximately 1% in fiscal 2008 compared to fiscal 2007. Patient management revenues increased $21 million, or 19.3%, to $128 million in fiscal 2008. The Company’s network solutions services revenue increased $7 million, or 3.9%, to $174 million in fiscal 2008. This increase was primarily due to an increase in the volume of out-of-network bills reviewed which generate greater revenue per bill and an increase in revenue per provider bill reviewed due to increased savings per bill for the Company’s customers.
 
Revenue


 



The Company derives its revenues from providing patient
management and network solutions services to payors of
workers’ compensation benefits, auto insurance claims and
health insurance benefits. Patient management services include
claims administration, utilization review, medical case
management and vocational rehabilitation. Network solutions
revenues include fee schedule auditing, hospital bill auditing,
independent medical examinations, diagnostic imaging review
services and preferred provider referral services.





37





Table of Contents







Change
in Revenue



 




Fiscal
2009 Compared to Fiscal 2008



 



Revenues increased by 3%, to $310 million in fiscal 2009,
from $302 million in fiscal 2008, an increase of
$8 million. The increase was primarily due to an increase
in revenue for the Company’s Enterprise Comp and CareIQ
services. Patient management revenues, which encompass
Enterprise Comp services, increased $6 million, or 4.6%, to
$134 million in fiscal 2009. The Company’s network
solutions services revenue, which include CareIQ services,
increased $2 million, or 1.3%, to $176 million in
fiscal 2009.


 



The Company’s limited revenue increase reflects the
challenging market conditions the Company has experienced during
the past few years. The decrease in the nation’s
manufacturing employment levels, which has helped lead to a
decline in national workers’ compensation claims,
considerable price competition in a
flat-to-declining
overall market, an increase in competition from both larger and
smaller competitors, changes and the potential changes in state
workers’ compensation and auto managed care laws which can
reduce demand for the Company’s services, have created an
environment where revenue and margin growth is more difficult to
attain and where revenue growth is uncertain. Additionally, the
Company’s technology and preferred provider network
competes against other companies, some of which have greater
resources available. Also, some customers may handle their
managed care services in-house and may reduce the amount of
services which are outsourced to managed care companies such as
CorVel.


 



The continued softness in the national labor market, especially
the manufacturing sector of the economy, has caused a reduction
in the overall claims volume and a reduction in case management
and bill review volume. The Company believes that referral
volume in patient management services and bill review volume in
network solutions will continue to reflect just nominal growth
until there is growth in the number of work related injuries and
workers’ compensation related claims.


 




Fiscal
2008 Compared to Fiscal 2007



 



Revenues increased by 10% to $302 million in fiscal 2008,
from $275 million in fiscal 2007, an increase of
$27 million. The increase was primarily due to the
acquisition of the assets of Hazelrigg Risk Management Services
in January 2007 and the acquisition of the stock of Schaffer in
June 2007, as described in the Notes to our Consolidated
Financial Statements. These businesses both provide claims
processing services to the property and casualty industry. These
acquisitions were the primary source of growth in the
Company’s patient management services. Excluding these
acquisitions of Hazelrigg and Schaffer, the Company’s
revenues would have only increased by approximately 1% in fiscal
2008 compared to fiscal 2007. Patient management revenues
increased $21 million, or 19.3%, to $128 million in
fiscal 2008. The Company’s network solutions services
revenue increased $7 million, or 3.9%, to $174 million
in fiscal 2008. This increase was primarily due to an increase
in the volume of
out-of-network
bills reviewed which generate greater revenue per bill and an
increase in revenue per provider bill reviewed due to increased
savings per bill for the Company’s customers.


 




Revenue


 



The Company derives its revenues from providing patient
management and network solutions services to payors of
workers’ compensation benefits, auto insurance claims and
health insurance benefits. Patient management services include
claims administration, utilization review, medical case
management and vocational rehabilitation. Network solutions
revenues include fee schedule auditing, hospital bill auditing,
independent medical examinations, diagnostic imaging review
services and preferred provider referral services.





37





Table of Contents







Change
in Revenue



 




Fiscal
2009 Compared to Fiscal 2008



 



Revenues increased by 3%, to $310 million in fiscal 2009,
from $302 million in fiscal 2008, an increase of
$8 million. The increase was primarily due to an increase
in revenue for the Company’s Enterprise Comp and CareIQ
services. Patient management revenues, which encompass
Enterprise Comp services, increased $6 million, or 4.6%, to
$134 million in fiscal 2009. The Company’s network
solutions services revenue, which include CareIQ services,
increased $2 million, or 1.3%, to $176 million in
fiscal 2009.


 



The Company’s limited revenue increase reflects the
challenging market conditions the Company has experienced during
the past few years. The decrease in the nation’s
manufacturing employment levels, which has helped lead to a
decline in national workers’ compensation claims,
considerable price competition in a
flat-to-declining
overall market, an increase in competition from both larger and
smaller competitors, changes and the potential changes in state
workers’ compensation and auto managed care laws which can
reduce demand for the Company’s services, have created an
environment where revenue and margin growth is more difficult to
attain and where revenue growth is uncertain. Additionally, the
Company’s technology and preferred provider network
competes against other companies, some of which have greater
resources available. Also, some customers may handle their
managed care services in-house and may reduce the amount of
services which are outsourced to managed care companies such as
CorVel.


 



The continued softness in the national labor market, especially
the manufacturing sector of the economy, has caused a reduction
in the overall claims volume and a reduction in case management
and bill review volume. The Company believes that referral
volume in patient management services and bill review volume in
network solutions will continue to reflect just nominal growth
until there is growth in the number of work related injuries and
workers’ compensation related claims.


 




Fiscal
2008 Compared to Fiscal 2007



 



Revenues increased by 10% to $302 million in fiscal 2008,
from $275 million in fiscal 2007, an increase of
$27 million. The increase was primarily due to the
acquisition of the assets of Hazelrigg Risk Management Services
in January 2007 and the acquisition of the stock of Schaffer in
June 2007, as described in the Notes to our Consolidated
Financial Statements. These businesses both provide claims
processing services to the property and casualty industry. These
acquisitions were the primary source of growth in the
Company’s patient management services. Excluding these
acquisitions of Hazelrigg and Schaffer, the Company’s
revenues would have only increased by approximately 1% in fiscal
2008 compared to fiscal 2007. Patient management revenues
increased $21 million, or 19.3%, to $128 million in
fiscal 2008. The Company’s network solutions services
revenue increased $7 million, or 3.9%, to $174 million
in fiscal 2008. This increase was primarily due to an increase
in the volume of
out-of-network
bills reviewed which generate greater revenue per bill and an
increase in revenue per provider bill reviewed due to increased
savings per bill for the Company’s customers.


 




These excerpts taken from the CRVL 10-K filed Jun 16, 2008.
Revenue
 
The Company derives its revenues from providing patient management and network solutions services to payors of workers’ compensation benefits, auto insurance claims and health insurance benefits. Patient management services include utilization review, medical case management and vocational rehabilitation. Network solutions revenues include fee schedule auditing, hospital bill auditing, independent medical examinations, diagnostic imaging review services and preferred provider referral services.


37


Table of Contents

Change in Revenue
 
Fiscal 2008 Compared to Fiscal 2007
 
Revenues increased by 10%, to $302 million in fiscal 2008, from $275 million in fiscal 2007, an increase of $27 million. The increase was primarily due to the acquisition of the assets of Hazelrigg Risk Management Services in January 2007 and the acquisition of the stock of Schaffer in June 2007. These businesses both provide claims processing services to the property and casualty industry and are discussed further below. These acquisitions were the primary source of growth in the Company’s patient management services. Patient management revenues increased $21 million, or 19.3%, to $128 million in fiscal 2008. The Company’s network solutions services revenue increased $7 million, or 3.9%, to $174 million in fiscal 2008. This increase was primarily due to an increase in the volume of out-of-network bills reviewed which generate greater revenue per bill and an increase in revenue per provider bill reviewed due to increased savings per bill for the Company’s customers. Excluding these acquisitions of Hazelrigg and Schaffer, the Company’s revenues would have only increased by approximately 1% in fiscal 2008 compared to fiscal 2007.
 
The Company’s limited revenue increase, excluding the aforementioned acquisitions, reflects the challenging market conditions the Company has experienced during the past few years. The decrease in the nation’s manufacturing employment levels, which has helped lead to a decline in national workers’ compensation claims, considerable price competition in a flat-to-declining overall market, an increase in competition from both larger and smaller competitors, changes and the potential changes in state workers’ compensation and auto managed care laws which can reduce demand for the Company’s services, have created an environment where revenue and margin growth is more difficult to attain and where revenue growth is less certain than historically experienced. Additionally, the Company’s technology and preferred provider network competes against other companies, some of which have more resources available. Also, some customers may handle their managed care services in-house and may reduce the amount of services which are outsourced to managed care companies such as CorVel Corporation.
 
The continued softness in the national labor market, especially the manufacturing sector of the economy, has caused a reduction in the overall claims volume and a reduction in case management and bill review volume. The Company believes that referral volume in patient management services and bill review volume in network solutions will continue to reflect just nominal growth until there is growth in the number of work related injuries and workers’ compensation related claims.
 
Fiscal 2007 Compared to Fiscal 2006
 
Revenues increased by 3% to $275 million in fiscal 2007, from $267 million in fiscal 2006, an increase of $8 million. The increase was attributable to the Company’s network solutions services revenue increasing $14.7 million, or 9.6%, to $167.2 million in fiscal 2007. This increase was primarily due to an increase in the volume of out-of-network bills reviewed which generate greater revenue per bill and an increase in revenue per provider bill reviewed due to increased savings per bill for the Company’s customers due to enhancements in the Company’s software. Part of the increase in network solutions was offset by a decrease in the Company’s patient management services. Patient management revenues decreased $6.6 million, or 5.8%, to $107.4 million in fiscal 2007. This decrease was primarily due to a decrease in case referral volume offset by a nominal increase in price of services.
 
Revenue


 



The Company derives its revenues from providing patient
management and network solutions services to payors of
workers’ compensation benefits, auto insurance claims and
health insurance benefits. Patient management services include
utilization review, medical case management and vocational
rehabilitation. Network solutions revenues include fee schedule
auditing, hospital bill auditing, independent medical
examinations, diagnostic imaging review services and preferred
provider referral services.





37





Table of Contents







Change
in Revenue



 




Fiscal
2008 Compared to Fiscal 2007



 



Revenues increased by 10%, to $302 million in fiscal 2008,
from $275 million in fiscal 2007, an increase of
$27 million. The increase was primarily due to the
acquisition of the assets of Hazelrigg Risk Management Services
in January 2007 and the acquisition of the stock of Schaffer in
June 2007. These businesses both provide claims processing
services to the property and casualty industry and are discussed
further below. These acquisitions were the primary source of
growth in the Company’s patient management services.
Patient management revenues increased $21 million, or
19.3%, to $128 million in fiscal 2008. The Company’s
network solutions services revenue increased $7 million, or
3.9%, to $174 million in fiscal 2008. This increase was
primarily due to an increase in the volume of out-of-network
bills reviewed which generate greater revenue per bill and an
increase in revenue per provider bill reviewed due to increased
savings per bill for the Company’s customers. Excluding
these acquisitions of Hazelrigg and Schaffer, the Company’s
revenues would have only increased by approximately 1% in fiscal
2008 compared to fiscal 2007.


 



The Company’s limited revenue increase, excluding the
aforementioned acquisitions, reflects the challenging market
conditions the Company has experienced during the past few
years. The decrease in the nation’s manufacturing
employment levels, which has helped lead to a decline in
national workers’ compensation claims, considerable price
competition in a flat-to-declining overall market, an increase
in competition from both larger and smaller competitors, changes
and the potential changes in state workers’ compensation
and auto managed care laws which can reduce demand for the
Company’s services, have created an environment where
revenue and margin growth is more difficult to attain and where
revenue growth is less certain than historically experienced.
Additionally, the Company’s technology and preferred
provider network competes against other companies, some of which
have more resources available. Also, some customers may handle
their managed care services in-house and may reduce the amount
of services which are outsourced to managed care companies such
as CorVel Corporation.


 



The continued softness in the national labor market, especially
the manufacturing sector of the economy, has caused a reduction
in the overall claims volume and a reduction in case management
and bill review volume. The Company believes that referral
volume in patient management services and bill review volume in
network solutions will continue to reflect just nominal growth
until there is growth in the number of work related injuries and
workers’ compensation related claims.


 




Fiscal
2007 Compared to Fiscal 2006



 



Revenues increased by 3% to $275 million in fiscal 2007,
from $267 million in fiscal 2006, an increase of
$8 million. The increase was attributable to the
Company’s network solutions services revenue increasing
$14.7 million, or 9.6%, to $167.2 million in fiscal
2007. This increase was primarily due to an increase in the
volume of out-of-network bills reviewed which generate greater
revenue per bill and an increase in revenue per provider bill
reviewed due to increased savings per bill for the
Company’s customers due to enhancements in the
Company’s software. Part of the increase in network
solutions was offset by a decrease in the Company’s patient
management services. Patient management revenues decreased
$6.6 million, or 5.8%, to $107.4 million in fiscal
2007. This decrease was primarily due to a decrease in case
referral volume offset by a nominal increase in price of
services.


 




This excerpt taken from the CRVL 10-K filed Jun 14, 2007.
Revenue
 
The Company derives its revenues from providing patient management and network solutions services to payors of workers’ compensation benefits, auto insurance claims and health insurance benefits. Patient management services include utilization review, medical case management and vocational rehabilitation. Network solutions revenues include fee schedule auditing, hospital bill auditing, independent medical examinations, diagnostic imaging review services and preferred provider referral services.
 
Change in Revenue
 
Fiscal 2007 Compared to Fiscal 2006
 
Revenues increased by 3.0%, to $275 million in fiscal 2007, from $267 million in fiscal year 2006, an increase of $8 million. The increase was attributable to the Company’s network solutions services revenue increasing $14.7 million, or 9.6%, to $167.2 million in fiscal 2007. This increase was primarily due to an increase in the volume of out of network bills reviewed which generate greater revenue per bill and an increase in revenue per provider bill reviewed due to increased savings per bill for the Company’s customers, and the Company’s focus of shifting its revenue mix to greater network solutions revenue. Part of the increase in network solutions was offset by a decrease in the Company’s patient management services. Patient management revenues decreased $6.6 million, or 5.8%, to $107.4 million in fiscal 2007. This decrease was primarily due to a decrease in case referral volume offset by a nominal increase in price of services.
 
The Company has been negatively impacted by a reduction in the overall claims volume due to employers implementing workplace safety programs. Employers have also been more aggressive in seeking early intervention services which the Company and the Company’s competitors offer, decreasing the length of a claim and decreasing the need for on-site case management services. The Company’s ability to add or retain customers, changes in the workers compensation market, changes in nationwide employment and the frequency of workplace injuries and illnesses could have a material impact on the Company’s ability to maintain or grow revenue in the future.
 
Fiscal 2006 Compared to Fiscal 2005
 
Revenues decreased by 8.2% to $267 million in fiscal 2006, from $291 million in fiscal year 2005, a decrease of $24 million. Nearly two-thirds of this decrease was attributable to the decrease in revenue from the Company’s patient management services primarily due to a decrease in the patient management referrals received by the Company. The decrease was primarily the result of a continued softness in the national labor market, especially the manufacturing sector of the economy. The Company was negatively impacted by a reduction in the overall claims volume due to employers implementing workplace safety programs. Employers were also more aggressive in seeking early intervention services which the Company and the Company’s competitors offer, decreasing the length of a claim and decreasing the need for on-site case management services. The rest of the decrease in revenues was attributable to a decrease in demand for the Company’s network solution services, primarily demand for the IME (independent medical examination) and MRI services.
 
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