Groom Law Group appointed as fiduciary special counsel to BWC Print E-mail
Symposium planned for August to discuss hospital fees

July 15, 2005

COLUMBUS – The Bureau of Workers’ Compensation (BWC) announced today the Attorney General’s Office has appointed Ian Lanoff of the Groom Law Group to serve as fiduciary special counsel. The request for special counsel was made by BWC with the support of the Management Review Team and Ennis Knupp.

The Groom Law Group will analyze and make recommendations regarding the fiduciary responsibilities of bureau personnel and will help BWC formalize conflict of interest policies for the Oversight Commission and its executive staff.

“Bringing aboard the Groom Law Group is a necessary step for the bureau as we seek to incorporate increased fiduciary accountability into our operations,” BWC’s interim Administrator/CEO Tina Kielmeyer said. “As we move forward, we must be sure potential conflicts of interest are immediately disclosed and that all BWC personnel maintain high ethical standards while responsibly investing the monies of Ohio’s employers and injured workers.”

BWC also announced they are planning a symposium in August to address the issue of hospital costs and their impact on the workers’ compensation system. The meeting will include business and labor stakeholders along with medical providers.

“We must work collaboratively to find a solution that will allow us to thoughtfully yet effectively control all types of medical costs,” Administrator Kielmeyer said. “Though we’ve taken steps to reduce hospital expenses, we must work together to find a long-term solution that strikes a balance between maintaining a cost-effective workers’ compensation system for employers while ensuring injured workers have local access to high-quality treatment.

“No option is off the table.”

Yesterday, the bureau announced they were terminating Oechsle International Advisors because of historical underperformance and changes in management style. As of June 30, the market value of BWC’s investment with Oechsle was $212.3 million on a total allocation of $210 million.

The bureau’s State Insurance Fund continues to be fully-funded with an approximate value of $14.3 billion. It also possesses a surplus.

Ennis Knupp recommended to BWC this week that either Barclays Global Investors or State Street Global Advisors be hired to oversee a passive index fund for any monies withdrawn or generated through liquidation of investments. Both firms will be submitted to the Oversight Commission for approval.

Ennis Knupp is also continuing the review process by sending every investment manager a survey asking for specific information as well as data regarding its performance and fee schedule. Ennis Knupp also has asked all managers to disclose any issues with the Securities and Exchange Commission or current litigation they may be involved in. Ennis Knupp is also evaluating broker relationships.

Ennis Knupp has no affiliations with any brokerage, investment management or investment banking firms. In operation since 1981, it serves more than 140 clients with aggregate assets of $480 billion.

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MEDIA CONTACT: Jeremy Jackson, Ohio Bureau of Workers’ Compensation, (614) 752-7558 or Emily Hicks, (614) 728-6197