Company Contends No Bid Workers' Comp Management Contract
By Sophia Brink
Published on December 07, 2007
In its lawsuit, Premier Comp Solutions claims that Pennsylvania's Departments of General Services and Labor & Industry should not have awarded a contract to Industrial Medical Consultants without allowing competition to bid.
Industrial Medical Consultants is affiliated with Highmark, Inc., a high-volume Pittsburg health insurance company.
The suit alleges that approval of the "sole-source" contract violates the state's procurement code. The code states that only in two situations should a contract be awarded without a bid process: in an emergency or when there is only one contractor available capable of providing required services.
The plaintiff's case contends that neither situation was applicable; therefore, Industrial Medical Consultants' contract should be voided.
A Highmark spokesperson could not be reached for comment.
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