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Someone please enlighten me if u can. Among SL's many disadvantages, one sticks out to me the most. In the collision world insurance companies have what they call "DRP" shops or "Direct Repair Program". In this, they offer or direct customers to that particular shop when repairs are needed. Pretty much funnel the majority of their customers there if they don't choose their own and strongly encourage those who do, to choose the DRP shop. Sound familiar? According to the insurance industry or antitrust laws and whatever, this sort of thing cannot be done in the glass industry. Yet, it is happening right in front of us. Safelite is effectively a DRP shop with pretty much any insurance company not named State Farm, and a few others. SL has agreements with all these companies to funnel their glass customers to them via the Safelite Solutions Network. How can this be allowed only to one company and not anyone else? How can we as an industry fight this? Its a joke and there's got to be a way to fight. Your thoughts?
here is what an insurance company says about why an authorized shop is necessary.
will the madness never end
an insurance company wants a standard of care for their policy holders
Select Service® Program
The _____ Select Service program is a network of auto repairers committed to providing quality auto repairs for_____customers. Repairers invited to participate in the Select Service program have to meet performance standards established by ________and provide:
•Quality, professional repairs
•Written national limited lifetime repair warranty
•Guaranteed completion dates
•Washing and vacuuming of the vehicle
•Pick up and delivery service upon request
•Direct payment to the repair shop upon completion of repairs
•And other convenient services (like agreement on price prior to the job)
Are you sure that it is the insurance company? Perhaps not. Several TPA's are lying about reimbursements and what is demanded. Please explain why a deeper discount is needed. How can repairs be the same as they were in 1993? The TPA's have taken the increases and beat us up. Time to stop being bullied by greedy TPA's. Has their staff taken pay cuts? We have started billing direct and rejecting their ridiculous offers. We are being payed direct. Might end up in court, but I can't survive on rates that are over 2 decades old. We can prove in court that our "cash" prices are higher. So much for their "fair and reasonable crap!!!!
OK. I got a letter a month ago. We would like you to take a bigger discount so we can maintain our profit margin. Says MR TPA. Not the big one. So I asked why. Well if we don't keep our profits at a certain level. Our share holders will leave and then you will have to deal with the OTHER GUYS. Says the TPA. So being curios. I thought I will ask one of the Insurance companies that use this TPA. The short answer is WE have our guaranteed invoice we do not care what they ask for. They have to make a living too.
SOOOOO it's ALWAYS has been and ALWAYS will be about THIER profit. As long as whoever it is that accepts the DICOUNTED work. THAT will be considered the standard for the industry. Don't even think they are at anyway liable for poor work. YOU agreed to the pricing BEFORE Y O U accepted the work referral. I DON'T have the ANSWERS.
All I know is you will need VERY deep pockets and a organization at a level that Teamsters run at. To even have a chance to change anything. H U G E money and TIME.