Universal Standard Medical Laboratories Selected as Administrator of Ford's Home Medical Services Program

Strategic Insights -

Universal Standard Medical Laboratories, Inc. announced that its subsidiary, Universal Standard Managed Care, Inc., has been chosen by Ford Motor Company and the United Auto Workers (UAW) to administer the comprehensive Home Medical Services Program. This multi-year contract, set to begin on June 1, 1995, will cover approximately 200,000 Ford hourly workers, non-Medicare retirees, and their dependents in 21 states. The program aims to reduce employer expenditures by at least 30% annually and provides all necessary durable medical equipment, respiratory therapy, and orthotic and prosthetic appliances for participants.

Key Takeaways:

  • Universal Standard Managed Care, Inc. has been selected by Ford Motor Company and the United Auto Workers (UAW) to administer the Home Medical Services Program, covering approximately 200,000 employees and their dependents in 21 states.
  • The program includes all necessary durable medical equipment, respiratory therapy, and orthotic and prosthetic appliances for participants.
  • The multi-year contract is expected to reduce employer expenditures by at least 30% annually.
  • Unlike its Laboratory Services Program, USMC has contracted with various service providers, including Ivonyx Inc., Homedco, and Becker Orthopedic Appliance Company, to provide services under the HMS agreements.
  • Universal Standard Managed Care, Inc. will retain a portion of the annual capitation fees, performing risk management and administrative functions.
  • The company's President, Perry McClung, expressed satisfaction with the new arrangement, citing a long-standing relationship with Ford Motor Company and the UAW.
  • The contract represents a significant expansion of "covered persons" under USMC's Laboratory Services and Home Medical Services contracts, totaling 800,000 individuals.

Statistics:

  • 200,000 Ford hourly workers, non-Medicare retirees, and their dependents will be included in the Home Medical Services Program.
  • The contract covers 21 states.
  • The program aims to reduce employer expenditures by at least 30% annually.
  • $70 million: annual revenues of Universal Standard Medical Laboratories, Inc.
  • 800,000: total number of "covered persons" under USMC's Laboratory Services and Home Medical Services contracts.

Sources:

  • "Universal Standard Medical Laboratories to Administer Ford's Home Medical Services Program." Business Wire. May 11, 1995.
  • "Universal Standard Medical Laboratories, Inc." (NASDAQ: USML) Business Profile.