success story
Visibility and predictive analysis help health insurer with workforce savings
Beeline helps client cut costs, reduce risks, and improve program quality.
- Industry
- Healthcare
- Client Since
- 2007
- Category
- Contingent Staffing, Services Procurement
The challenge
One of the largest healthcare insurers in America, this not-for-profit health services company depends on a mixed workforce of approximately 9,500 employees and contractors in the Mid-Atlantic region for its success. It also contracts for services from various outsourced service providers.
Originally managing its highly decentralized extended workforce manually using spreadsheets and email, the client recognized the need for a comprehensive vendor management system (VMS). This system was essential to provide the necessary visibility to curtail rogue time and material (T&M) spend. Additionally, it would consistently manage more than 600 statement of work (SOW)-based projects from a portfolio of offshore professional service providers.
Beeline VMS has provided insight and visibility to achieve cost savings. In the first 18 months, the client reduced over-rate-card charges. Plus, in every category, it allowed the client to reduce gross margin and negotiate better supplier rates.
The solution
Beeline implemented a phased program, beginning with IT contingent staffing and progressing through services procurement, then expanding the staff augmentation program to accommodate other labor categories. The first phase covered the management of more than $60 million in annual spend involving 300 contingent staffing assignments contracted through 50 primary suppliers. The implementation included integration with four major internal systems: accounting (accounts payable and general ledger), project portfolio management (for both time and portfolio resources), security access control, and human resources management systems.
The second phase, covering an additional $20 million in spend allocated among offshore development and testing suppliers, included processes for managing legal, procurement, and finance approval on all work orders, tracking and automatic payment of milestones, and creation and management of “not to exceed” projects.
The third phase added labor categories in nursing, administrative, clerical, and customer service totaling $5 million annually. It also incorporated advanced analytics, including program and supplier scorecards and a total headcount analysis covering the client’s entire extended workforce.
The results
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Since its inception, the Beeline VMS has provided insight and visibility to achieve cost savings. In the first 18 months, the client reduced over-rate-card charges by more than 12%, and in every category, it allowed the client to reduce gross margin and negotiate better supplier rates.
- Just as important as cost savings is the ability to benchmark suppliers and rate their performance based on specific KPIs. Using VMS analytics and ad hoc reporting, the client’s program office developed a robust supplier scorecard to rate and rank suppliers for cost, quality, efficiency, and compliance, improving overall program performance.
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Beeline’s VMS has allowed the client to implement initiatives across the risk management spectrum including an automated credentialing system, which is notified when a worker is onboarded and puts appropriate controls in place to ensure that only those with active assignments can access facilities and data systems.
- Advanced analytics helped the client go beyond program quality analysis to include advanced budget management and portfolio management. These capabilities enable the client to make data-driven decisions concerning extended workforce management.