Challenge

A publicly traded health care equipment manufacturing and services organization with $1.3 billion in revenue and 4,000 U.S. employees had excessively expensive benefits. Management of the company's short-term disability program was insufficient. Vendor contracts were inefficient due to long-tenure relationships with no testing for market competitiveness. Administration of the company's benefits program was fragmented, as was the risk pool in its medical plans.

Project

Collaborating with those leading the company's finance and human resources departments, EBSG completed a comprehensive diagnostic analysis that identified ways the company could reduce its spending. We subsequently helped the firm to procure new vendors and implement new programs. We have been retained for ongoing financial plan management.

Results

EBSG identified how the company could reduce its expenses and avoid additional costs by 11 percent (approximately $3.5 million) while improving some of the benefits at the same time. The company is reinvesting a portion of those savings into wellness initiatives.

Win/Win

• Employees gained more plan choices, a better life insurance benefit, and an improved wellness program. In addition, the employee process for reporting leave and filing claims for short-term disability was simplified.
• Shareholders benefited from reduced plan expenses, improved margins, and future trend mitigation.
• The Human Resources staff realized streamlined benefits administration. They had fewer vendors to manage and fewer claim bank accounts. Disability expenses were mitigated.

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Read how our consulting solutions have recently benefited:

• chemical manufacturing conglomerate