More Money Flows Into the WC TPA World - Sedgwick is Sold
According to Joe Paduda, KKR has acquired a majority state in Sedgwick for over $2 Billion. His column indicates that the current management doubled the company's value in a fairly short period of time. We are confident that Paduda's prediction of pressure upon Sedgwick management to increase top line and bottom line revenues will bear out. Top line, increase the number of clients and claims processed, fairly simple. Bottom line, decrease costs as a percentage of revenue, again fairly simple. Melding the two, however, might prove to be challenging and if there will be any attempt to uphold some level of positive service for the company's clients and, importantly, injured workers.
Read Mr. Paduda's column at: http://www.joepaduda.com/2014/01/sedgwicks-acquired/