Staking a claim on the future
乐鱼（Leyu）体育官网 helped a Medicare administrative contractor reduce IT costs to position the company for continuing competitiveness.
Client
A Medicare administrator
Sector
Healthcare
Project
IT cost optimization
Client challenge
A large healthcare solutions organization operates in a perfect storm of high-stakes conditions: As a designated Medicare Administrative Contractor (MAC), all revenues come from a small number of multi-year government contracts. The competition between MACs is fierce, with the pipeline of available contracts聽shrinking, and every bid a 鈥渂et-the-company鈥� effort.
The MAC sector is technology-intensive, using IT-enabled scale and speed to collectively process more than 1.2 billion Medicare claims a year. Our client鈥檚 leadership asked 乐鱼（Leyu）体育官网 to assess and retool its Information Technology (IT) operations in order to reduce costs-per-claim鈥攖he all-important industry benchmark. With 乐鱼（Leyu）体育官网鈥檚 help, the healthcare organization is on its way to potentially reducing IT costs by 20 percent and driving costs-per-claim to industry-leading levels. The organization鈥檚 leadership has staked its claim in a survival-of-the-fittest future.
This client now has an outsourcing framework in place that will help reduce the IT budget by a projected 20 percent.
Approach
乐鱼（Leyu）体育官网 worked together with our client鈥檚 leadership over a two-and-a-half-year period to design and implement a cost-efficiency-focused IT solution. 乐鱼（Leyu）体育官网:
1
assessed the client鈥檚 IT cost profile, designed a target operating model, offered road map options to help achieve the client鈥檚 goals, and supported implementation through go-live
2
focused on help desk/desktop support, data center, and voice/data networks as potential areas of savings, and subsequently helped our client replace two in-house data centers with a single third-party shared services center
3
established vendor-review and vendor management frameworks, helping the organization develop RFP templates for its managed IT services and all future proposals.
Benefits to client
With 乐鱼（Leyu）体育官网鈥檚 help, our client is now positioned for survival and growth during a period of industry consolidation, when the difference between commercial聽success and failure rests on a relatively small number of large Medicare contracts. Specific benefits include:
1
an IT services outsourcing framework in place that will help reduce the IT budget by a projected 20 percent
2
a change in focus for the IT organization from tactical involvement with servers, databases, applications, and batch jobs to what really matters: strategic management of its platform to meet the real needs of its federal client
3
an IT operating model that can help achieve and sustain cost savings year after year.
乐鱼（Leyu）体育官网 insights
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We understand how to align public- and private-sector stakeholder interests
We help different types of stakeholder communities鈥攊n this case, end-user government agencies, our client鈥檚 parent company, leadership and IT staff, and current or prospective external IT partners鈥攅asily understand the challenges and benefits that are relevant to their specific interest. -
We uncover hidden IT opportunities
We鈥檙e able to identify the precise drivers of IT cost鈥攂roken down by function鈥攁nd then turn them into tangible savings, with pragmatic solutions that we鈥檝e successfully used in similar engagements or other industries.
Meet our team
Ash Shehata
Principal, National Healthcare Sector Leader, 乐鱼（Leyu）体育官网 US
Ash Shehata
Principal, National Healthcare Sector Leader, 乐鱼（Leyu）体育官网 US