Sisters of Charity Exempla Healthcare Consolidate Insurance with MedAssets

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Sisters of Charity and Exempla Healthcare Consolidate Group Term Life and AD&D Insurance with MedAssets to Save Almost $3 Million

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Problem

Sisters of Charity of Leavenworth (Sisters of Charity) and their Denver-based affiliate Exempla Inc. (Exempla Healthcare) wanted to consolidate their insurance plans so that their system would have a single plan and supplier. In addition to immediate plan savings, the company sought long-term rate stability and channel expertise in the understanding and crafting of their new plan.

Solution

Working with MedAssets Insurance Program, Sisters of Charity and Exempla were able to significantly reduce their employer-paid benefit costs over the initial four-year contract period. In addition to savings generated, Sisters of Charity and Exempla are now members in the Healthcare Employers Assurance Trust, a trust (managed by Insurance Point®) that aggregates the insurance benefits of hundreds of thousands of employees all over the United States. Through the aggregation of employee risk from such a narrow and similar channel of employers, insurance benefits are rated based on the aggregated model, one that reduces the risk any one hospital or healthcare system and helps make each member hospital or system less susceptible to large rate swings which can occur when rates are based on a small employee base. Membership in the trust assures that client rates are set based on the risk of the trust and its’ hundreds of thousands of employees rather than the risk of the individual hospital or healthcare system.

In short, MedAssets is bringing GPO best practices to a suite of HR benefit offerings in order to commoditize the products and create low and stable benefit rates well into the future for customer hospitals and healthcare systems. This streamlined process delivers guaranteed savings, stable long-term rates and allows our client HR departments more time to focus more closely on the management of pressing medical benefits issues, retirement plans, personnel development and HR policies.

Results

By utilizing MedAssets Insurance Program, Sisters of Charity and Exempla were able to significantly reduce their employer-paid benefit costs by 29.2 percent in the first year and by almost $3 million over the initial four-year contract period.

Improve your
Operating Margins

MedAssets improves
and sustains
operating margins
by 1.5% to 5%.

Insurance Program

MedAssets can help stabilize and lower Life and Disability Insurance Rates and put a minimum of 10% savings towards your bottom line.