Executing a strategic acquisition for a national healthcare payer organization

The Challenge

A large healthcare services organization was acquiring commercial lines of business from an existing client healthcare cooperative to form a new health plan. The healthcare services organization had to split existing front, middle and back office functions across the new entity, now a wholly owned subsidiary of the organization, and launch the new plan in just three months. The client engaged crankfrog to develop and execute an IT and operations strategy in support of establishing this new health plan.

 

Our Approach

crankfrog leveraged existing systems and processes to determine the best approach to split the new company from the old company (co-op health plan). We partnered with executive leadership at the healthcare services organization and the subsidiary to conduct an impact assessment, develop a go-forward strategy to cover all aspects of running a health plan, developed a transition plan for splitting out the new company, and defined a roadmap of future initiatives.

crankfrog developed a detailed program management plan covering vendor management, system development and enhancement prioritization. An integrated IT strategy was developed to create operational efficiencies for both organizations. crankfrog designed a scalable shared services model to support the client’s vision of launching Medicare and Medicaid in other regions and markets nationally.

 

Results

The healthcare services organization successfully launched the new health plan supporting 50,000 members with $125 million in annual revenue, on the accelerated timeline. In doing so, crankfrog enabled the healthcare services organization to make its first venture into commercial health plan management.