Cigna/Linkia/Hanger: How Linkia makes money...part I of II
Jim DeWees
Description
Collection
Title:
Cigna/Linkia/Hanger: How Linkia makes money...part I of II
Creator:
Jim DeWees
Date:
10/3/2006
Text:
To all that are concerned with the Linkia deal:
Just a thought that I had on the Linkia deal. In the Hanger Quarterly
meeting transcripts that I have read, the executives of Hanger were very
boastful to the investors of how well Linkia was doing, how many million
dollars they had made so far with this new entity. Actually I have no idea
how Linkia had made any money at that point, since they did not even have
any contracts going at that point, Cigna was not officially on board at that
time, unless Cigna had given them some millions of dollars up front for
something, or somewhere Hanger came up with some big bucks under the Linkia
account.
But, here's the point. We all know (at least all of us that have worked for
Hanger at some miserable point in our careers) that Hanger does not like
paying out any bonus money to the practitioners. I heard everyone grumble
in the region I worked at least, and whenever anything was mentioned about
the bonus, everyone just kind of laughed at it being the big dangling carrot
that they hang out there, thinking that we are all stupid enough to keep
believing that there is some remote chance that we would get some bonus.
They kept on giving bigger discounts to the payers, and then expected us
(the practitioners) to find better ways to bill more for the prosthetic
devices we were making, and to also find cheaper ways to make the devices
(like buying cheaper materials, components, feet, knees, etc). It was to
the point, that if we were to make the bonus, we had something like less
than $1000 to buy everything for a BK prosthesis: a foot (k3 energy storing
foot), 2 liners, shuttle lock, all the modular components, etc. As an
amputee, there is no leg that I would personally wear and trust my life on
that would cost less than this $1000 limit we had set on us to make the
bonus. Actually, I don't even think there is a way to buy all the materials
and parts to make that even possible, even using all the cheapest crap on
the market.
Anyway, that is kind of the history on the bonus plan that I had seen, and I
know it has not gotten any better for the practitioners.
So, how does this tie in to Linkia and Cigna? Well, in order for Linkia to
make money, they have to skim off the top some amount of the money being
paid for the services that are rendered. They have to take some percentage
of the money, that is how these 3rd party administration companies work.
There is NOTHING established that will put any limit on what Linkia will
take. One of the strategies out there, possibly, is that since right now
ONLY Hanger offices are in the Linkia network, Linkia can give the patient
care facilities whatever they want to give to them. It might be as little
as 50% of medicare allowable. Linkia will keep the rest of what Cigna pays
for the services and goods. I am sure that Hanger will make sure that the
majority of the money given to them will stay in the Linkia account and NOT
go into the Hanger account for the offices that are producing the goods and
actually making the money for the company. What does it take to staff an
insurance office? Just a few people with NO formal education, or formal
training, basically the minimum wage people that just answer the phones,
verify if the patient has coverage (that is they have to be able to type the
name and id number into a computer and read what comes up), and of course,
the Hanger method of a bunch of managers and upper managers that get the big
money. The actual people answering the phones probably barely make minimum
wage. There is NO bonus plan for Linkia employees, except the upper people
that already make tons on money.
Hanger will make sure there is NOT enough money going to the patient care
facilities to come close to making a bonus, and they way it is structured,
if they can pay so little to the patient care facilities, then it will drain
totally the amount of ALL the bonus pool, and ensure that NO practitioner
will make a bonus, saving the company a few more million dollars (if they
ever have paid that out in bonuses to practitioners, I doubt it). Maybe
that is part of their strategy that they talk about in the Quarterly report
about reducing the manufacturing costs of the devices, and save some million
dollars.
If I worked at Hanger (and thank goodness I don't), I would be very upset at
this point over many issues. Besides that fact that the executives have all
made millions doing stock trading (look at Insider Trading on Yahoo stocks
which is public information, you just have to look for it, and it is easy to
find) this year alone, and now capturing these Cigna and Great West
contracts, this will FLOOD the Hanger offices with patients, with the
promise that if you work hard, there is a bonus waiting at the end of the
year. What is going to happen is that you will all be worked to death,
there will be a huge increase in patient visits, but you will get paid
virtually nothing for anything you do for a Cigna patient, but that money
will stay with Linkia. The company will make the money, but you will not
see any benefit for all the extra work and sweat that went into the process.
I encourage all the Hanger people out there to go to HighBeam.com and get
the quarterly reports for the company, they are very interesting and
disturbing to say the least. Also, look up the stock transactions and see
how the executives are buying and selling stocks like crazy at ideal times,
and walking away with millions every year. That is also disturbing. That
is NOT imaginary money, it is real dollars, and it is being taken out of the
company, legally though, by your leaders. Those millions of dollars are
what YOU have made and earned for the company, and what are you getting for
it?
Now, are any of us in the private sector stupid enough to sign a contract
with Linkia (even if that were allowed), and let them skim off the top the
money that we should be getting paid for our services? Are we going to do
all the work and let some other entity get fat off of our hard work?
To Be Continued.....
Just a thought that I had on the Linkia deal. In the Hanger Quarterly
meeting transcripts that I have read, the executives of Hanger were very
boastful to the investors of how well Linkia was doing, how many million
dollars they had made so far with this new entity. Actually I have no idea
how Linkia had made any money at that point, since they did not even have
any contracts going at that point, Cigna was not officially on board at that
time, unless Cigna had given them some millions of dollars up front for
something, or somewhere Hanger came up with some big bucks under the Linkia
account.
But, here's the point. We all know (at least all of us that have worked for
Hanger at some miserable point in our careers) that Hanger does not like
paying out any bonus money to the practitioners. I heard everyone grumble
in the region I worked at least, and whenever anything was mentioned about
the bonus, everyone just kind of laughed at it being the big dangling carrot
that they hang out there, thinking that we are all stupid enough to keep
believing that there is some remote chance that we would get some bonus.
They kept on giving bigger discounts to the payers, and then expected us
(the practitioners) to find better ways to bill more for the prosthetic
devices we were making, and to also find cheaper ways to make the devices
(like buying cheaper materials, components, feet, knees, etc). It was to
the point, that if we were to make the bonus, we had something like less
than $1000 to buy everything for a BK prosthesis: a foot (k3 energy storing
foot), 2 liners, shuttle lock, all the modular components, etc. As an
amputee, there is no leg that I would personally wear and trust my life on
that would cost less than this $1000 limit we had set on us to make the
bonus. Actually, I don't even think there is a way to buy all the materials
and parts to make that even possible, even using all the cheapest crap on
the market.
Anyway, that is kind of the history on the bonus plan that I had seen, and I
know it has not gotten any better for the practitioners.
So, how does this tie in to Linkia and Cigna? Well, in order for Linkia to
make money, they have to skim off the top some amount of the money being
paid for the services that are rendered. They have to take some percentage
of the money, that is how these 3rd party administration companies work.
There is NOTHING established that will put any limit on what Linkia will
take. One of the strategies out there, possibly, is that since right now
ONLY Hanger offices are in the Linkia network, Linkia can give the patient
care facilities whatever they want to give to them. It might be as little
as 50% of medicare allowable. Linkia will keep the rest of what Cigna pays
for the services and goods. I am sure that Hanger will make sure that the
majority of the money given to them will stay in the Linkia account and NOT
go into the Hanger account for the offices that are producing the goods and
actually making the money for the company. What does it take to staff an
insurance office? Just a few people with NO formal education, or formal
training, basically the minimum wage people that just answer the phones,
verify if the patient has coverage (that is they have to be able to type the
name and id number into a computer and read what comes up), and of course,
the Hanger method of a bunch of managers and upper managers that get the big
money. The actual people answering the phones probably barely make minimum
wage. There is NO bonus plan for Linkia employees, except the upper people
that already make tons on money.
Hanger will make sure there is NOT enough money going to the patient care
facilities to come close to making a bonus, and they way it is structured,
if they can pay so little to the patient care facilities, then it will drain
totally the amount of ALL the bonus pool, and ensure that NO practitioner
will make a bonus, saving the company a few more million dollars (if they
ever have paid that out in bonuses to practitioners, I doubt it). Maybe
that is part of their strategy that they talk about in the Quarterly report
about reducing the manufacturing costs of the devices, and save some million
dollars.
If I worked at Hanger (and thank goodness I don't), I would be very upset at
this point over many issues. Besides that fact that the executives have all
made millions doing stock trading (look at Insider Trading on Yahoo stocks
which is public information, you just have to look for it, and it is easy to
find) this year alone, and now capturing these Cigna and Great West
contracts, this will FLOOD the Hanger offices with patients, with the
promise that if you work hard, there is a bonus waiting at the end of the
year. What is going to happen is that you will all be worked to death,
there will be a huge increase in patient visits, but you will get paid
virtually nothing for anything you do for a Cigna patient, but that money
will stay with Linkia. The company will make the money, but you will not
see any benefit for all the extra work and sweat that went into the process.
I encourage all the Hanger people out there to go to HighBeam.com and get
the quarterly reports for the company, they are very interesting and
disturbing to say the least. Also, look up the stock transactions and see
how the executives are buying and selling stocks like crazy at ideal times,
and walking away with millions every year. That is also disturbing. That
is NOT imaginary money, it is real dollars, and it is being taken out of the
company, legally though, by your leaders. Those millions of dollars are
what YOU have made and earned for the company, and what are you getting for
it?
Now, are any of us in the private sector stupid enough to sign a contract
with Linkia (even if that were allowed), and let them skim off the top the
money that we should be getting paid for our services? Are we going to do
all the work and let some other entity get fat off of our hard work?
To Be Continued.....
Citation
Jim DeWees, “Cigna/Linkia/Hanger: How Linkia makes money...part I of II,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 24, 2024, https://library.drfop.org/items/show/227395.
