Praxis Consulting What We Do
We've identified three recurring problems that ultimately drive companies to outsource their subrogation efforts.

Turnover in claims.
Adjuster turnover leads to missed referrals, which in turn, negatively affects subrogation results. Additional training and time must be devoted to new employees, causing momentum to stall.

Other adjuster priorities.
Adjusters have many responsibilities during the claims cycle: determining coverage, investigating facts of loss, assessing liability, calculating damages, negotiating settlement, setting reserves, and issuing payment. In light of these important adjuster functions, subrogation sometimes takes a back seat or is an afterthought for some companies.

Claims people may not have a stake in subrogation results.
Claims adjusters often have a lack of subrogation objectives, and tend to focus on more heavily weighted competencies, which can negatively affect subrogation results.

Subrogation Outsourcing

Companies that outsource subrogation efforts (partial or complete) inevitably see solutions to immediate problems (e.g., too much fixed overhead) as well as set forth a plan to reap long-term financial benefits (e.g., unearthing hidden revenue streams).

Outsourcing subrogation with Praxis Consulting has reliable, replicable and tangible benefits, such as:

  • Near-immediate reduction in the company’s fixed costs by converting fixed expenses to a variable cost structure. This can be especially important during periods of fluctuating or declining volumes.
  • Maximized recovery results.
  • An average of >15% collision recoveries to collision paid loss.
  • Savings on manpower and training costs
  • The transfer of ULAE from expense cost to loss costs, causing a substantial reduction in ULAE
  • The minimization of staff production and morale issues due to fluctuating workloads.
  • Enabling the company to redirect energy and resources into the core business, while increasing recovery results.

Closed File Review

Companies looking to increase net income turn to Praxis to uncover overlooked or hidden subrogation potential, and retrieve these assets from closed files. Through our “Subro Closed File Review,” Praxis has built a reputation based on the ability to find and recover these assets, therefore increasing the company’s profitability.

Why outsource closed file reviews? Our claims department can handle it.

Adjusters have many responsibilities during the claims cycle — from determining coverage to calculating damages — and subrogation can sometimes take a backseat to these important functions. Also, when carriers don’t establish subrogation objectives for their claims adjusters, the adjusters will, understandably, tend to focus on more heavily-weighted competencies.

The process is simple.

  • > Step 1
  • > Step 2
  • > Step 3
  • > Step 4
  • > Step 5

The company provides Praxis with a list of closed files. Data requirements are minimal, and provided by Praxis, based on an initial consultation. Read-only access to your claims system is provided to Praxis to allow file reviews. This is the extent of your IT department’s involvement. Praxis limits the need for its clients’ IT department because we know IT is a scarce resource.

The Praxis audit team reviews the closed file list and identifies claims with recovery potential. We then enter those claims into the Praxis Subrogation System, where they are managed until conclusion.

Praxis’s investigation team then reviews the claim in detail, completes the necessary investigation to perfect the subrogation claim, and places the responsible party on notice.

Once on notice, the Praxis subrogation specialist takes over and pursues the recovery of the subrogation claim. Once recovered, Praxis remits the net proceeds to the insurance company. The company then enters the recovery proceeds into its system and issues the deductible (if applicable).

Should the responsible party fully or partially deny payment, the Praxis subrogation specialist will seek recovery through alternative means, including arbitration and litigation.

Database Search & Recovery Services

Identifying missed Workers’ Compensation recovery is a challenge for both logistical and economic reasons. Despite significant recovery potential, these opportunities are frequently not pursued due to these challenges. Partnering with Praxis Consulting, and using our Database Search and Recovery Services, companies can overcome these challenges and benefit from otherwise missed recovery opportunities.

Praxis Consulting utilizes a proprietary database comprising millions of court actions nationwide to identify lawsuit matches to those injured workers, providing the basis for recovery. Our ability to match injured workers with any related lawsuits , and then pursue these cases to recover some, or all, of the benefits previously paid by our clients, is unique to Praxis Consulting.

As a major player in the workers’ compensation recovery space, Praxis Consulting has the experience, expertise and capacity to handle all types of recovery projects, both large and small. At Praxis Consulting, we believe industry leading results are achieved through the proper balance of people, process, and technology.

  • Company provides claim data and records access to Praxis
  • Initial match is performed using the Praxis proprietary database
  • Matched claims are validated
  • Parties are placed on notice
  • Lawsuits are continuously monitored
  • Settlements are negotiated and related funds are recovered by Praxis
  • Praxis remits net recovered funds to Company

  • Arbitration Management

    Praxis is able to generate millions of dollars each year through arbitration management. We have the experience — over 6,000 arbitration claims initiated and millions of dollars collected — and we know when to file and what the process requires to be successful.

    Companies lose millions of dollars each year in collectable subrogation potential simply because they don't use arbitration correctly.

    Arbitration is a highly-specialized skill, and one that offers the opportunity for significant recoveries on disputed claims, as well as prevent payout on third-party counter claims. Because the number of arbitrations to file, or respond to, can fluctuate, outsourcing converts the fixed cost of internal staff to a variable cost.

    Please contact us if you believe your company could benefit from a comprehensive subrogation review and analysis.

    Subrogation Claims Purchasing

    Companies have internal subrogation departments which specifically identify and recover subrogation dollars. Praxis focuses on purchasing blocks of these “closed files” which have revenue potential, but were never identified or recovered through internal recovery efforts. Many companies fall behind on achieving internal claims recovery goals. By selling closed subrogation claims to an outside recovery firm, companies can benefit from the opportunity to accelerate claims recovery with maximum efficiency. Purchase prices are negotiated against the immediate cash which can be generated and the ability to increase net income. After factoring the costs and the related risks associated with collection, a cash payment presents an increased value to companies. More importantly, Praxis can provide companies in financial difficulty with liquid funds for an otherwise unrealizable asset.

    Types of Claims We Handle

    There is potential for subrogation in any accident that involves a third party: whether it be a car accident, product failure, improper workmanship,employee or some other negligent act. Identifying and successfully recovering all subrogation opportunities is complex, time consuming and often intimidating. Each state has its own set of laws and guidelines, each treating subrogation differently. Each claim type has its own nuances that need to be understood. Liability is often contested, while claimed damages are scrutinized and reduced. Focus and expertise are of paramount importance. As a result superior investigation and negotiation skills are required, with a strong dose of determination. Even then, sometimes subrogation claims require the filing of arbitration or lawsuits to bring about a successful result.