Risk
Healthcare

 

ASATS Case Study: Healthcare


A leading health insurance company faced increasing competition, declining revenues, significant cost pressure and misaligned strategy execution. The health insurance company partnered with Aon to undertake business transformation and align the organization, revitalize growth strategy, and drive financial and operational performance.

Our client was the dominant regional health plan with over US$ 2bn in revenue and 59% market share in communities served and consisted of a diversified portfolio of insurance and health management products and services. Changing healthcare regulations were resulted in an increasing competitive threat from integrated services delivery providers and national companies. The company was faced with declining revenue growth, increasing margin pressure, and lack of innovation in product pipeline driving weak financial performance and balance sheet challenges. Coupled with a multi-year trend of declining workforce engagement, the CEO and senior leadership team faced a critical challenge to undertake an organization realignment to enable their evolving strategy while simultaneously achieving rapid and focused execution.

Aon worked closely with the CEO and senior leadership team to confirm and focus strategic intent. Collaborative work teams engaged the organization from top to bottom in designing and implementing an enterprise-wide change program. Aon designed and supported transition to a new organization structure to enable innovation, growth, and operational efficiency. New governance processes and structure were designed and implemented from the board/CEO down through the director level. Leadership effectiveness was assessed and executive coaching was initiated to address gaps. Developed roadmap to guide implementation and KPIs to align performance management.

We measure success based on the results of our clients. A new organization design was approved by the board and the multi-year implementation roadmap was initiated. Key leadership changes were identified and implemented. Employee engagement and accountability were improved. The business was restructured to close a financial gap of US$ 78m in net income and quarterly financial results tracked positive to plan for the first time in 9 quarters. A strategic portfolio of initiatives was defined, teams were formed, and action initiated to achieve innovation acceleration, cost savings, and revenue growth across health care value chain "boundaries".