Selective Insurance Group Purchases Managed Care Systems, Inc

Business Wire, Oct 9, 1997

BRANCHVILLE, NJ--(BUSINESS WIRE)--Oct. 9, 1997--Selective Insurance Group, Inc. has purchased Managed Care Systems, Inc. (MCSI) and McPhaden Rehabilitation Services, Inc. (MRSI), located in Hamilton, New Jersey. For the past five years, MCSI and MRSI have provided medical claim management services for the Branchville-based regional property and casualty insurer.

James W. Entringer, Selective's chairman and chief executive officer, said the move "strengthens our ability to facilitate quality care and case management while managing costs on medical claims. This combination is an indispensable component of our commitment to providing extraordinary claim service, and MCSI is a leader in this very specialized field. MRSI then coordinates the rehabilitation services that are often so critical to an individual's recovery and return to work.

"In an era of spiraling medical costs, a good medical claim management program is our best chance at giving our customers access to high quality medical and rehabilitation services," Entringer said. "At the same time, we help decrease overall costs through effective case management and elimination of redundancies. Over the past several years, we've saved millions of dollars through MCSI/MRSI while assuring injured workers an extensive, fee-controlled network of excellent medical providers and specialists."

MCSI president Michael Creghan said joining Selective "provides growth opportunities we didn't have as an independent entity. Selective and MCSI/MRSI have very compatible views about the importance of medical claim management as an entry point for a number of services and products that meet the changing needs of the property and casualty insurance market."

Both Creghan and William McPhaden, director of MRSI, will continue to head MCSI/MRSI operations. The intent, Entringer said, is that the approximately 170 MCSI/MRSI employees will remain in their present central New Jersey location. The managed care facility will operate as a separate entity, utilizing the name MCSI/MRSI, and will have reporting responsibility to Selective through James W. Coleman, senior vice president for strategic business units.

Selective Insurance, which employs almost 1,600 people, offers a broad range of insurance products and services through approximately 800 independent agents to "main street" business, light industry, public entities, and individuals in 12 Eastern and Midwestern states.

CONTACT: Rich Broome, Corporate Communications

973/948-1324