CNA Health Partners

Managed Care Firm Thrives as HMO Survivor

CNA Health Partners of Little Rock was established in 1985 as Burgett & Dietrich Inc., with a staff of three and a good idea — to provide managed health care services for large self-insured employers.

Today, the firm employs 275 serving clients in-state and elsewhere, and the good idea has translated into a sustained annual growth rate of 15 percent and sales of $32 million in 1999.

“Most of our sales come through organic growth, customers who want us to provide additional services and products,” says Dan Parker, executive vice president and chief operating officer of CNA Health Partners.

The venture manages 125 self-insured networks with $350 million in annual health care costs for clients such as Weyerhaeuser, Emerson Electric, Alcoa, Reynolds, Whirlpool and American Greetings.

Founded by Lyle Burgett and Orlo Dietrich, the company became affiliated with Blue Cross and Blue Shield of Arkansas in 1988. Five years later, the operation was incorporated into CoreSource Inc. The firm was renamed CNA Health Partners in 1996 when it became a wholly owned subsidiary of CNA Insurance.

The formative years of the company, which coincided with the rough-and-tumble days of HMOs, produced war stories.

“Early on, there were always cash flow issues,” says Parker, who joined the company in 1987. “There were periods of time we knew we couldn’t meet payroll, and we would delay paying ourselves so we could pay the rest of the staff.

“Sometimes we would ask our clients to accelerate their payments to help us out of a tight spot. That requires a special level of trust.

“They understood what we were trying to create as a group of entrepreneurs, and they valued what we did and were willing to take risk with us. It wasn’t uncommon to have our line of credit maxed out.

“We don’t have that problem at all now.”