HealthASPex clearly illustrates the Fairfax model: The firm identified an unexploited industry - processors of health claims - whose paper-laden business processes could be greatly improved through the application of a new technology.

Fairfax formed HealthASPex in order to acquire profitable businesses that process healthcare claims relating to self-funded health benefit plans, otherwise known as Third Party Administrator (TPAs). TPAs account for more than 36% of the revenues generated annually from the $6 billion non-public admistrative claims processing business.

HealthAspex licensed a newly developed software technology that had been identified by Fairfax. This product was already installed and processing on-line more than 100 million Medicaid claims a year in the State of Florida. HealthAspex modified and further adapted the software to the TPA business. By automating the entry of claims information on the front end, improving the benefit adjudication process, and reducing customer service personnel, the technology significantly reduced the time and cost required to process a claim When HealthAspex began this process the average industry wide cost to process a claim was $1.25. Today it is a little more than $.12. This savings has dropped directly to the company’s bottom line.