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State Fund's Plan To Outsource Investigations Department Won't Happen Overnight
By Lonce LaMon - January 20, 2012

Change is often difficult and transformation usually painful. So apparently the workers’ compensation claims adjusters at California’s State Compensation Insurance Fund are not happy campers about the State Fund’s decision to outsource the entire investigations department and have it managed by one to a few top tier large investigations firms. 

The word on the street is that SCIF adjusters are complaining vociferously, stating the outsourcing is not going to work, it’s not going to fly, it’s going to put layers of bureaucracy between the adjuster and the investigator—making work flow less efficient rather than more efficient, and that it’s pretty much going to be a disaster.
 
So, whether the outcries are the reason for a change in plan, or just a rethinking from the higher ups, or both, the panel of top tier investigative firms are not going to be chosen and finalized for another six to nine months, at the least.
 
The plan was to soon contract one, two, or a few large investigations firms to fully manage sub-contractors, independent investigators, or employee investigators to do the workers’ compensation claims investigation work for State Fund.  Each year SCIF conducts between 3,500 to 5,000 investigations of their workers’ comp claims. 
 
The PI Management firms would have to have a completed SAA70 or SSAE audit to qualify for a contract.  And the small firms, independents, and/or management firm employees would work for them.  So far, a couple of small PI firms have written to adjustercom to ask who the PI Management firms will be, and the answer is that is not known. At this time, the transition won’t happen for six to nine months down the road, and possibly, as rumor has it (and it's just a rumor), the plan may be in the process of being revisited.
 
 
 

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