2010 Year in Review
It is paradoxical that CorVel met its financial goals in such a difficult year for our country, yet we are more aware then ever of what we still have to accomplish. During the year we gained more traction in our expansion into the sale of full service claims management services. The growth generated from that line of business and the strengthening of our traditional managed care services throughout the year allowed CorVel to achieve a 9% growth rate and record earnings per share of $2.06, a 46% increase over last year. This is not to say that we are finished, but we are very proud of what has been accomplished thus far and our future is filled with opportunity.
Claim volumes and the associated medical expenses continue to move in opposite directions. The total volume of workers' compensation claims continued to decline this past year, while medical costs associated with those claims continued their annual increase. This phenomenon, coupled with the overall poor economy, has weighed heavily on the industry. There has been continued consolidation within our industry and an increase in the pace of consolidation seems to be inevitable. CorVel is well positioned to not only withstand the market dynamics of declining claims and consolidation, but to prosper. Our philosophy of proprietary ownership of assets provides us with economic advantages, while the expansion of our product line opens CorVel to new markets and new growth opportunities. Staying true to our foundational beliefs has enabled us to deliver record results during a challenging economic time.
CorVel remains committed to providing an improved workers' compensation solution to the employer community. We have gained tremendous experience and knowledge throughout this past year and our mission to deliver improved claims management results to our customers through our integrated approach remains undaunted. While the task is large and complex, we are making significant progress.
Technology advancements continue to force companies and industries to keep pace. CorVel is dedicated to deploying the most current technologies in order for our customers to enjoy the benefits through improved performance. Today, smart phones and tablet computing are generating new ideas and new ways to connect individuals involved in any transaction, whether it be of a personal nature or business nature. We believe that this wave is applicable to our industry and we are excited to incorporate these advancements as we continue Connecting all of the constituencies in the continuum of a workers' compensation claim.
On behalf of CorVel, we would like to acknowledge our customers. The past year has altered the economic landscape of our country, an alteration that has affected all of us. It has made the opportunity to deliver cost savings programs through effective partnerships especially rewarding. We would also like to acknowledge all of the CorVel associates that ultimately deliver our services every day. Without you, this business would not be possible. Our work is only partially complete. We look forward to the future and we are excited about our opportunities.