Organizational Optimization-139

The Situation:

A health care administration company aspired to improve its profitability to industry norms and become a leader in the market place. The company relied upon a proprietary software platform for rapid deployment of new business wins.  Robust wins, software platform deficiencies and enhancements, along with ever increasing pressure by clients to reduce their costs generated tremendous confusions as to priority of initiatives within the organization and added excess costs to deliver and manage the various clients’ volumes.

The Driver Goal:

• Increase EBITDA to 20% within eighteen months
• Maintain or improve the current high level of customer service for all clients

• Installed a prioritization and resource management process for information technology projects resulting in shorter development times and lower development costs.
• Eliminated the need for over 6,000 hours annually of mainframe computer access time for savings of more than $2 million
• Developed and implemented resource rationalization management systems that routinely balance resources to workloads
• Consolidated call centers, claims review, enrollment, and data entry functions that were spread across the United States
• Developed and implemented a phase gate product development process
• Redesigned customer facing organizations and processes to leverage growth with existing customers
• Removed barriers to higher levels of electronic claims submission
• Consolidated information technology organization to support systems standardization and change management
• Launched a new, market-leading thrust based on rapid new client start up accompanied by 100% first pass quality

• EBITDA increased from 8% to a run rate of 17% in 8 months and 20% within 18 months
• Overall productivity increased by 17%
• Customer service performance led to wins of 15 out of 16 proposals