We all know that too many vendors, software, and partners can create financial waste and inefficient operations. But we also know that the right amount (and right kind) of third-party services can add value while decreasing overall costs. But how exactly do value-added services work as a cost-reduction strategy? And how do you choose the best services for your health plan? Let’s discuss it.
One of the most effective value-add services you can offer your members is one that provides several services at once. Like a Swiss army knife. This is beneficial not only because you get more bang for your buck, but you also reduce member confusion. One study found that 40% of organizations with many vendors for benefits reported lack of use as a major issue. When members have to jump through several hoops for one healthcare experience, you can bet the money you’re spending on those contracts will go to waste.
An all-in-one value-added service will reduce your number of contracts, improve efficiency, improve member satisfaction, and reduce overall costs. To get you started on your search for the perfect Swiss army knife of a third-party vendor, take a look at our 3-in-1 Smart Healthcare Platform!
Did you know that companies that embrace digital innovations are 26% more profitable than their peers? Plus, it’s something that members actually want. A 2018 report found that 57% of surveyors believe it’s important for their health plan to have digital self-service features. Member needs should be one of your top deciding factors for value-add services. So if members are demanding digital options, you should listen.
Fulfilling members’ needs, especially with digital options, can also improve retention. One report shows that members with positive experiences will stay with you five years longer than members who have negative experiences. This is great news considering high retention creates significant cost savings for health plans. High-quality customer experiences can also lower the actual cost of serving members by up to 33%.
With those stats in mind and the fact that members want digital services for their health, one of your value-added services to reduce costs should absolutely be digital capabilities.
When thinking about a cost-reduction strategy, you have to ask more than, “what can we cut to save money?” You should be asking, “what can we add that brings value and reduces cost?”
All-in-one platforms make sense because they:
Digital capabilities are another key value-added service to use in your cost-reduction strategy because they:
Your cost reduction strategy should be specific to your health plan’s needs, but research and data show that the two value-added services mentioned in this blog are an excellent place to start.
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