"Preferred Vendor Lists"?????

[Karen Peterson Diaz]

This is driving me crazy!!!!
I'm a "small agency," have a handful of clients, and a few of my firms do workers' comp defense work. I have a great relationship with my clients. I love working with them, but recently I've not been able to see them as much because they "can't use me" on certain files because the insurance companies on certain files have these "preferred vendor lists." I'm getting nailed by this! It makes me sad. It makes my clients unhappy that they can't call me for their depos also. What the heck can I do? Does anybody know how to GET ON these secret little "vendor lists"?? It just seems like a huge task so I've never taken the time to deal with it. I am getting to the point I may have to find out how to do it though because my business is slowing and slowing because of this! If it is a rate issue, I'm sure my rates are competitive. Can anyone give me advice? Is it something that can be done, get on these lists, being the "small agency" that I am? Any advice is welcome!
Or just a big hug is good too! :)

[Rita Carpenter]

Karen - these "preferred vendors" as you call them are probably doing nothing more contracting with insurance companies with a low rate for all their work - it's going on all across the U.S. State after State after State has tried to fight this "contracting" - some States already have anti-contracting laws, but they are not enforced, unfortunately. Delaware tried to enforce their anti-contracting law against Gallo Reporting and lost - Supreme Court ruled contracting is LEGAL. So there you go. If it were me, I'd ask my clients to tell me the rates they are paying, then contact the insurance companies YOURSELF and bid on the work in your area.

I'm sure your rates are competitive under normal circumstances - but these agencies that are contracting are not submitting "competitive" bids; they are undercutting to get the volume work, so their rates are probably lower than what you charge.

[Karen Peterson Diaz]

Bummer! I tried to believe it was not "contracting" -- didn't want to use that word! You are right though. You have to be! They are bringing down the industry bigtime and taking the little fishies out of the pond, unfortunately, like myself. It makes me sick! My clients have become my friends and it just isn't fair! We've worked together for years and years! Well, I appreciate all of your thoughts. I will do my best. I was just hoping it would all go away, but it seems like weekly I'm getting news of ANOTHER client that can't use me! Ugh!!! Thanks again. I will try to survive! Have a great rest of your day! :)

[Patricia A. Smith, RPR, FPR]

Karen, This is a major problem in Florida also. And it's been almost impossible for the lil guys to compete. Keep in touch with your clients for when things might change and they are turned lose again. In the meantime, try to find a whole new bunch of clients. I've lost lots of clients this way and nothing I've been able to do. What happens sometimes is another big agency not in my area asks me to cover the depos for a price. They want a kickback. Now, if that isn't a kicker. And my "Clients" can't do anything about it.
But at least it keeps you in their face for when things hopefully fall apart down the road. Keep the faith but try to keep building a new client base.

[Karen Peterson Diaz]

Thank you so much! Yes, great advice! I've just been so "comfy" with my clients that I've had for years and haven't had the "need" to get more! Haven't wanted to deal with THAT! ha ha. But I will do as you say and move forward! Thank you! I do agree that staying in their face (my clients) will help. I am still doing work with them, just not to the extent I was before! But I will continue to smile and laugh and be professional and be "happy" and hope that someday soon this will all turn around and the "vendor lists" will go bye-bye!!!! They, too, hope that! My clients say they get some reporters in there with absolutely NO personality......of course, right? It's the reporters that are getting paid the low rates that will work for these agencies that are underbidding with this contract junk! You get what you pay for, right? Well, thanks again for the positive feedback. Much appreciated!!!! :)