Clearly Define Your Business Objectives

A leading US health services firm was facing pressure to close a P&L gap by significantly reducing in-year expenditures. Their goal was to reduce costs while minimizing the impact to their client service levels, growth potential, and strategic flexibility.

Their B-B-C business model meant that a majority of their expense base was devoted to servicing their clients employees and families (collectively known as members) through the use of call center staff, 3rd party vendors, and direct mail.

Aquire & Synthesize Relevant Data

We combined customer service utilization and outcomes data with financial databases to identify multiple levers through which the organization could reduce expenses, and ranked them based on their potential impact on client service levels, growth potential, and strategic flexibility. This allowed us to identify several effective profitability drivers that did not impact the business in a significant way.

Develop an Action Plan

Our analysis led to several concrete recommendations on which we based our proposed action plan.  Examples include:

Demand Optimization: Use a member’s gender, age, and health risk factors to create propensity to engage models which identify members with the lowest likelihood to engage. These members can be targeted for outreach using low-cost digital modalities without impacting overall engagement levels.

Demand Elimination: Eliminating wasteful or ineffective processes.

Process Optimization: Reducing activities which don’t provide value to the business or customer.

Partner with You to See it Through

With a combination of vendor management, waste elimination, process optimization, and resource redeployment, we helped our client reduce operational costs by 15%. Careful planning with key business leaders and functional stakeholders enabled our client to implement the recommendations quickly while maintaining or improving their client SLAs, growth rates, and strategic flexibility.

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