The State of Louisiana’s Office of Risk Management is being privatized. Louisiana Commissioner of Administration Angele Davis announced that F.A. Richard & Associates, Inc. (FARA) will take over the adjusting and management of all property and casualty claims and loss prevention for the State of Louisiana’s self-insured risks. It is estimated that the State of Louisiana will save at least $20 million over five years.
According to the press release issued by the Louisiana Governor’s office, Office of Risk Management (ORM) Director Bud Thompson said, “I commend my staff for their yeoman’s work in the research, preparation and execution of this RFP, especially their commitment to evaluate the proposals objectively and analyze the advantages, disadvantages and projected cost-savings to our in-house program in the long-term best interest of the State. Anticipated advantages of privatization include access to state-of-the-art technology improvements; reduced claims and program costs; management flexibility; and the transition from day-to-day claims and loss prevention to enterprise risk management.
It is estimated that 85 Louisiana state employees will lose their state jobs, but those employees will be offered positions by FARA at salaries based on its existing pay scales.
If you or a loved one has been seriously injured or suffered a wrongful death in an accident caused by a Louisiana state employee, at a defective Louisiana premises, or by a defective Louisiana road or highway, contact the Baton Rouge, Louisiana accident and injury attorneys at Dué, Guidry, Piedrahita & Andrews. Email Louisiana injury lawyers or call (225) 929-7481 to schedule a free consultation.