In 1987, Gordon Clemons joined investors from Minnesota, to found CorVel Corporation (originally named "FORTIS"). Three small vocational rehabilitation firms were consolidated to form the initial foundation of the new Company, valued at approximately $2 million. The Company quickly exceeded 200 associates and proceeded with the conviction that local service backed by innovative information management systems could create a successful managed care enterprise.
Within two years, the number of service offices more than doubled to 51 locations and the Company entered the medical bill review and medical case management business. Investments in technology began almost immediately and a data center was established in Portland, Oregon.
In the spring of 1991, the Company first issued stock to the public and began trading on the NASDAQ at a market capitalization value of $43 million. The following year the FORTIS name was sold, raising $4 million and the Company changed its name to CorVel Corporation. The name CorVel is based on the Latin language meaning "of one heart."
With the funding from the name sale, CorVel began building the national preferred provider organization (PPO), an effort that dramatically changed the Company's breadth of service and strategic positioning in the casualty managed care marketplace. During the mid-'90's, CorVel doubled its office network again and expanded its software offerings. PPO services became an important part of most managed care sales. Out-of-network medical review was added to the portfolio of provider programs. Beginning in the year 2000, CorVel added to its services by offering a directed care network, including diagnostic imaging, physical therapy, independent medical examinations and chiropractic services. CorVel's directed care networks offer access to thousands of credentialed facilities throughout the nation, and can now manage the entire episode of care from appointment scheduling through reimbursement to assure quality care, preferential appointments, and competitive rates.
CorVel's most recent innovation is a new, innovative approach to disability management and claims administration. CorVel offers a comprehensive solution directed toward the self insured and municipal markets. The Company proactively manages the entire claim episode by incorporating a medical management component combined with an event driven diary system and smart rules based processing. CorVel is able control the cost of claims more effectively than the traditional claims management model, saving customers time and money.
In CorVel's ongoing effort for continuous improvement, CorVel continues to enhance our complete Network Solutions offering. Projected to save customers over $4 billion in the next year alone, Network Solutions is a comprehensive, proactive medical savings solution for all in-network and out-of-network medical bills. Network Solutions specializes in reducing the cost of all bills through our national network management database, proprietary bill review software, expert fee negotiation, professional review and the nation's only reasonable and customary database comprised of original hospital line item descriptions.
Looking to the future, the company has invested over $200 million in new systems, technologies and people to develop better solutions for its clients. New information management tools are being added to the service line, further expanding the information processing capabilities that have always been the core of the Company's value proposition.
