First Service Administrators and Verisk Health Join Forces to Reduce Healthcare Costs by Five Percent

A focus on preventative medicine and strategic data analysis helps minimize wasteful spending and improve member health

WALTHAM, Mass., January 20, 2010 Verisk Health, Inc., announced today that First Service Administrators, Inc. (FSAI) successfully lowered the healthcare cost trend across its book of business by 5 percent and reduced emergency room use by 10 percent  by implementing innovative campaigns based on Verisk Health’s Explorer solution.  Verisk Health is a global leader in identifying, analyzing, and predicting healthcare risk.  FSAI is a premier third-party benefits and risk management administrator for hospitals, healthcare systems, and public entities.

“The secret to improving healthcare is not spending more, but spending wisely,” said Kathleen Sullivan, R.D., executive vice president of business solutions for FSAI.  “Explorer allows us to examine every level of a client’s healthcare plan to identify wasteful spending on inefficient or ineffective programs and reinvest that money in areas that maximize access to quality care.”

FSAI selected Explorer, a clinical analytics software solution, to help change the face of healthcare for its clients.  Using Explorer, FSAI is able to provide actionable data so that preemptive care can be administered before the onset of serious disease or before an employee’s disease state worsens.  Some of the campaigns the company implemented include wellness and compliance education, drug cost analyses, member compliance initiatives, and incentive-based benefit design.

FSAI’s initiatives resulted in cost savings for many of its clients, including:

  • reduced in-patient admissions by 10 percent
  • reduced cost trends of 5 percent over 24 months of incurred claims
  • lowered emergency room visits
  • increased mammogram compliance from 46 to 72 percent

“To change the healthcare playing field, all the available data sources must be transformed into one actionable view,” said Nathan Gunn, M.D., chief medical officer at Verisk Health.  “FSAI has used the Explorer solution to allow its clients to clearly identify specific areas where its interventions will have the biggest financial and clinical impact.”

About Verisk Health
Verisk Health, a subsidiary of Verisk Analytics, leverages healthcare data to help businesses and governments understand their medical and financial risk for the purpose of managing costs and clinical outcomes more effectively.  Through the combination of leading predictive science, the finest evidence-based clinical engine, and superior technology, we have created the most extensive independent risk-assessment and decision-analytics platform in the healthcare industry.  Our primary focus is to identify actionable strategies for managing healthcare costs and quality at both the individual and population levels.  We consistently research, evaluate, and invest in our business to ensure that we remain leaders in our industry and the most efficient and effective solution for our clients.

About FSAI
First Service Administrators is a leading risk management company providing third‑party benefits administration and innovative cost containment solutions to the healthcare industry, mid to large-sized public and private self‑funded employer groups and government Medicaid programs since 1985. FSAI offers a flexible approach to benefits administration tailoring its suite of superior healthcare cost management services to each client’s specific needs.  FSAI is committed to enhancing the physical and financial well-being of clients and their employees through a powerful combination of efficient plan administration, network management, predictive modeling tools, and life-enriching wellness and disease management programs.  For more information, visit

Release: Immediate

Trish Tarantino (Verisk Health)

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