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TAKE ACTION Managing Managed Care.(LEADERS & SUCCESS)(IBD'S 10 SECRETS TO SUCCESS)

Investor's Business Daily

| March 01, 2006 | COPYRIGHT 2006 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Cord Cooper

3 Joe Anderson blended his background in government with Don Schaller's track record in health care. The result: streamlined managed-care plans in seven states -- and one of the fastest-growing health care management consulting firms in the U.S.

Based in Phoenix, privately held Schaller Anderson runs health plans that service more than 1.5 million members. Growth estimates put the company's revenue at well over $200 million by year-end.

Schaller and Anderson met in 1984, when Arizona Gov. Bruce Babbitt asked Anderson to overhaul the state's troubled Medicaid plan.

Anderson was essentially Arizona's chief operating officer, overseeing everything from finance to risk management. To help revamp the Medicaid plan, he hired Schaller, a physician and former medical director at Cigna.

Into The Black

Rebuilding the plan from ground zero, they hired people "who understood managed care -- who knew how to be regulators and audit the HMOs," Anderson said.

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