Performance Food Group

Implementing Improved Outcomes

The Client

Performance Food Group (PFG), a leader in the food service industry, is ranked No. 91 on the Fortune 500 company with more than 37,000 associates and 150 locations across North America. Founded in 1885, PFG’s experience and innovation in the industry has led to continued growth over the last 100-plus years. Today, PFG delivers food and food service products to more than 300,000 customer locations and has one of the nation’s largest truck fleets with more than 150 million miles logged.

The Partnership

In 2017, PFG strategically partnered with CorVel for workers’ compensation and liability solutions, with a shared vision of improving program outcomes. The collaboration emphasized transparency and innovation, resulting in a seamless implementation process and an established workflow between the two teams. Leveraging CorVel’s technological investments, PFG gained tools for effective communication and real-time program monitoring, streamlining claims management and results reporting.

Strategic Planning

From the start, CorVel and PFG collaborated on strategic planning, establishing benchmark goals and creating action plans to improve outcomes. CorVel’s extensive claims handling experience and proactive approach to managing risk facilitated the cost-effective resolution of PFG’s liability and workers’ compensation claims. By monitoring critical areas of their program to identify trends and claim severity, CorVel’s liability claims specialists worked efficiently to investigate and resolve each case. In doing so, we lowered PFG’s liability exposure and mitigated risk to reduce costs. Additionally, the implementation of legal bill review identified discrepancies and ensured bills complied with established budgets, resulting in a significant cost reduction across the program. For workers’ compensation, legal bill review achieved a 7.5 percent net reduction and significant savings. With this success,  we recently rolled out legal bill review for liability in October 2023, driving additional costs out of the program.

Tail Claim Closure

With PFG’s multiple acquisitions, including Reinhart FoodService and Core-Mark in 2022, implementation has been ongoing during our seven-year partnership. Before the acquisitions, Reinhart FoodService and Core-Mark worked with different TPAs to manage their workers’ compensation and liability claims. Integrating claims data from different sources can result in inconsistent data formats. However, CorVel’s industry-leading software enabled a seamless integration and transfer of claims. By normalizing the data based on payroll and miles driven, CorVel identified locations with higher frequencies and initiated safety measures to better manage claims results.

Through a streamlined workflow and our effective systems in place, CorVel closed PFG’s tail claims quickly. The strategic plan established at the beginning of the partnership and strength in claims efficiency contributed significantly to the successful closure rates in the first year of each acquisition. We achieved the following claims closure rates within the first 12 months of receipt: 79 percent for all workers’ compensation, 77 percent for auto liability, 100 percent general liability, and 90 percent for Texas nonsubscriber tail claims.

Looking to the Future

Sharing a unified partnership philosophy and a commitment to innovation, CorVel and PFG maintain a collaborative approach to drive advancements in claims administration and cost containment. PFG, at the forefront of embracing technological advancements, piloted CorVel’s severity model in 2023 to harness the power of generative AI for enhanced data analysis during claim file reviews. Together, our forward-thinking approach has significantly enhanced the program, adopting a “no surprises” mantra by empowering claims adjusters, enabling strategic decision-making, and ensuring optimal outcomes, paving the way for future success.