CONTRACT & VENDOR MANAGEMENT FOR HEALTHCARE INSURANCE PROVIDER
- Leader of comprehensive medical insurance and mini-med plans with 95% of total individual market in North Carolina
- 4,700+ employees
- 3.89M customers
BUSINESS
NEED
- Ability to measure vendor progress or action against their managed services contract for the Testing & Quality office, including 150 Vendor Testing Associates and 25 Client Associates
- Simplify contract (now $175M over 5 years) and reduce annual spend over time with single vendor
- Higher percentage of testing functions to be automated
CHALLENGE
- Over 6 different vendors utilized throughout entire organization
- Out-of-control vendor spend with no direct value
- Compliance gaps in current Service Level Agreements (SLA’s)
- Vendor was seen as providing little thought leadership to customer and a high cost staff augmentation provider
SOLUTION
& RESULTS
- Negotiated and drafted new Master Service Agreement; total value to client ~$33.4M
- Paradigm acted as liaison between client and vendor to renegotiate set results for future contracT
- New set of SLA’s and KPI’s to support continuous improvement
- Decreased Effective Rate from $39 to $36/hour for Managed Capacity
- Price reductions of $1/hour annum for Managed Capacity projects
- Reduced demand planning from 6 to 3 months
- $16M+ in negotiated savings over 5-year agreement
- Transitioned client from Staff Augmentation to Thought Leadership model