FORTUNE 20 HEALTHCARE COMPANY SAVES MILLIONS BY EMBRACING PROCESS IMPROVEMENT.png 

 

About the Customer

This customer is a Fortune 20 pharmacy benefits management organization offering integrated pharmacy benefit management services including network-pharmacy claims processing, home delivery pharmacy services, specialty pharmacy benefits management, and additional healthcare-related solutions.

Every year this organization processes millions of home-delivery prescriptions.

Challenges

A recent acquisition by the customer led to an examination of two systems that support processing. In an effort to position themselves for a digital transformation, the company was measuring their system costs, and wanted to find out two things:

  1. What a transformation would mean from a cost-reduction perspective.
  2. How much they could lower costs by adjusting existing environments.

Increasing automation was a focal point of cost reduction. 4th Source, having served this company for over a decade, was able to nurture profitability and growth through automation, and maintain the same employee base.

Let’s say, as an example, that twenty people are required for one task like labeling. After automation has been introduced, those same twenty people are still involved ten years from now, but task-automation increased 50%, enabling those staff members to add value. The biggest benefit is that output increases dramatically without having to divert more resources to the task.

Taking a Digital Strong Approach

4th Source was an established partner with a track record of discovering and enacting systematic changes to lower costs. A team was assembled to conduct a ten-week assessment of the customer’s existing platform handling customer service, order processing, and fulfillment.

The team focused on projects with the fastest return, or where the lowest investment met the fastest return.

The assessment included three criteria to recommend action:

  1. Reduce waste
  2. Increase automation
  3. Drive costs out of the system

Stage Zero - the 5 Most Impactful Projects to Start Now

The 4th Source assessment proposed sixty projects and developed a quick-hit list called Stage Zero. The assessment also helped the organization map a path toward digital transformation. They could optimize processes and current technologies now with major cost-saving projects so that when it came time to modernize, the transition would be seamless.

Stage Zero involved the five most impactful projects of the assessment. The organization quickly greenlit the initiative, and the assessment team switched gears to execute automation and business process improvement (BPI).

Measuring Gains with Data

The team, with an understanding of the customer’s business, identified system changes and used data to measure gains.  Once the team executed the projects, they used the same data to demonstrate improvements. As a result, system automation increased to 50% in multiple functions.

The customer never had to figure out what to focus on to drive costs out of their system. 4th Source took care of everything from discovery to implementation, and measured every ounce of cost savings and benefit gained with data. Since the effort to drive out costs began, gains have added up to millions in cost savings.

Why More Fortune 1000 Companies Turn to 4th Source

It’s one thing to claim that you can help a company save money, it’s an entirely different thing to predict that you can save them a million dollars, and come out the other side, demonstrating with data, that you’ve accomplished (or surpassed) it.

For this group of projects, the biggest goal was cost-reduction. Increasing process quality and automation were secondary goals. 4th Source increases quality by removing manual steps, and reduced risk by minimizing human error.

The path to digital transformation involves a large investment and technology changes. 4th Source ensures customers are prepared to meet those changes by optimizing their current systems and processes so that, when they do upgrade, they know exactly what to expect. Learn how 4th Source can help your organization move forward, faster.

OUTSOURCE WITH CONFIDENCE

And Move Your Digital Agenda Forward, Faster

Get Started