Print Analysis Leads to Cost Savings, Improved Risk Management | Healthcare

7/11/2023

Health plan achieves an estimated 30% annual savings on operational print costs following RRD’s consultative assessment

CHALLENGE

Facing increasingly high overhead costs (e.g., software licensing and associated support personnel) and looming equipment upgrades, a leading health insurer could not justify or optimally manage the operation of its in-house print center. 

While interested in outsourcing the print production work — a key part of their cost optimization strategy — the insurer also wanted to maintain control of all composition design and change management workflows. A tailored solution proved necessary and would require the following components:

• Integration between RRD and the insurer’s technology applications
• Streamlined workflow including transparency into production cycle 
• Dedicated account management team to oversee day-to-day operations

SOLUTION

An existing relationship led the company to entrust RRD with completing a thorough analysis of its operational print supply chain and cost structure (e.g., infrastructure and workflows). RRD deployed a dedicated team of consultants with both print industry experience as well as health insurance communication expertise. 

The assessment determined that the current cost structure combined with a downward trending print volume no longer made it viable for the insurer to invest in ongoing capital requirements.  Together, RRD and the client developed a go-forward strategy including both short-term savings and long-term optimization.

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Aligned with the insurer’s initial concern to maintain control of its design process, RRD proposed a revised workflow. Completed and approved composition design files are now sent to RRD for data processing and print production versus being handled in-house. 

This shift to RRD’s platform ensures streamlined production for a number of communications types:

• Service communications: EOBs, checks, letters, statements
• Marketing communications: sales kits, marketing collateral
• On-boarding communications: welcome kits, ID cards

Additionally, to simplify how print orders are submitted and tracked, the insurer gains access to RRDCare, a proprietary client portal that serves as a single point of entry to all of RRD’s online tools for ordering, tracking, and reporting. 

RESULTS

By outsourcing print production to RRD, the insurer’s in-house costs tied to software licenses, data processing, support personnel, and associated hardware were eliminated. According to the RRD assessment of their communications environment, the estimated annual savings potential is approximately 30% on operational print costs.

To realize financial savings opportunities quickly, RRD recommended a transition based on a lift-and-load model, followed by standardization and optimization over time. This approach will allow the insurer to benefit from:

• A variable cost model instead of the traditional fixed cost model that requires ongoing capital investment
• Access to industry-specific technologies to improve workflows
• Built-in redundancy and disaster recovery through RRD’s network of facilities
• Compliance assurances not currently being met