Enhancing margins and growth by optimizing operations utilization and impact
A leading US health services firm was facing pressure to close a P&L gap by significantly reducing in-year expenditures. Their leaders’ goal was to reduce costs while minimizing any adverse business impact. By combining customer service utilization and outcomes data with financial databases, they identified multiple levers for reducing expenses while minimizing impact on client service levels, growth potential, and strategic flexibility.
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.
Acquire & 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
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.
Expense Reduction, Enhancing margins, Healthcare finance, financial database, Healthcare Investment, Healthcare, Data Modeling, New York Consulting, Management Consulting, Healthcare, FischerJordan, Data Analytics, Quantitative Analysis, Analytics, Healthcare Management, Healthcare Case Study
Back to STRATEGY
Discover how our 4-step process has helped clients avoid confusion and succeed in the marketplace.
DISCLAIMER - This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by FischerJordan or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. FischerJordan is not a fiduciary by virtue of any person’s use of or access to the Site or Content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on this Site before making any decisions based on such information or other Content. In exchange for using the Site, you agree not to hold FischerJordan, its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other Content made available to you through the Site.