This client provides access to behavioral
managed care services.
Background
With three distinct markets (health plan, public sector and workplace), and over 6,000 employees
and more than 70 million members they are one of the largest proprietary provider networks in the
country and serves its members from regional service centers in every state.
The Problem
While significant market share had been achieved through aggressive M&A activity, the client faced
year on year growth in both medical claims and administrative expenses. Accordingly,
the “silo” nature of the business made any real economies difficult to realize.
Compounding these problems were on-going service issues in the centers, multiple legacy systems
for processing, and market pressure for improving stock value.
Scope and Assignment
Synergetics involvement consisted of driving service, cost and quality improvements first in one division
and then within the entire enterprise. The objective was to methodically identify 15-20% cost savings
through out the company. Productivity, Utilization, Capacity, and Value add were analyzed and
commitment plans were developed to achieve unit cost savings in a predetermined timeframe.
The Results
Annualized cost savings estimated at $53mm with actual cost savings during the project in excess of $14mm.
Additional cost savings from corporate and divisional consolidation in excess of $24mm. A downsizing of the
IT department which will yield $9mm and an outsourcing of provider re-credentialing will result in $700k.
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