In 1988, Gordon Clemons joined with Jim Michael and Jeff Michael, investors from Minnesota, to found CorVel Corporation (originally named "FORTIS"). Three small vocational rehabilitation firms were consolidated to form the initial foundation of the new Company, valued at approximately $2 million. The Company quickly exceeded 200 associates and proceeded with the conviction that local service backed by innovative information management systems could create a successful healthcare management enterprise.
Within two years the number of service offices more than doubled to 51 locations and the Company entered the medical bill review and medical case management business. Investments in technology began almost immediately, and a data center was established in Portland, Oregon. Revenues increased fourfold from 1987 levels, as the Company's service began to achieve national reach.
In the spring of 1991 the Company first issued stock to the public and began trading on the NASDAQ at a market capitalization value of $43 million. The offering raised $3.5 million, net of the repayment of venture funding. The following year the FORTIS name was sold, raising $4 million, and the Company changed its name to CorVel Corporation. The name CorVel is based on the Latin language meaning "of one heart". With the funding from the name sale, CorVel began building the CorCare national preferred provider organization (PPO), an effort that dramatically changed the Company's breadth of service and strategic positioning in the casualty healthcare management marketplace.
During the mid-'90's CorVel doubled its office network again, and expanded its software offerings. PPO services became an important part of most healthcare management sales. Out-of-network medical review was added to the portfolio of provider programs. When the internet began to transform business communications, CorVel web-enabled its entire service line via the launch of the CareMC website.
As the Company looks to the future, artificial intelligence has been added to much of its software, making CareMC an interactive portal for providers, payors and employers. New information management tools are being added to the service line, further expanding the information processing capabilities that have always been the core of the Company's value proposition.
