CASE STUDY

Drove Operational Improvements to Yield Increase in Margin for Healthcare Tech Company

Challenge

A provider of risk-adjustment/HEDIS chart retrieval, coding/abstraction, and analytics was faced with significant declines in margins due to reduced demand and increased competition. The company sought to improve contribution margin by re-engineering its operating strategy and optimizing staffing and productivity.

Approach

The SSA & Company team deployed an Economic Activity Analysis to measure activities, times, and costs, mining “touchpoints” of 3.2 million charts through the value chain to develop a view of marginal cost and utilization. We re-engineered the model to create dynamic labor pools to match monthly demand and capitalize on labor cost arbitrage and analyzed internal and external data sources to develop competitive pricing data sets, compute customer-level price elasticities, and pinpoint where economic loss was occurring.

Results

66%

Transformed operating strategy resulted in a 66% increase in resource utilization across the production workforce

23%

Improvements yielded a 23% increase in contribution margin and created a sustainable path for profitable production

Related Services

Results

66%

Transformed operating strategy resulted in a 66% increase in resource utilization across the production workforce

23%

Improvements yielded a 23% increase in contribution margin and created a sustainable path for profitable production

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