Management. Executing Operational. A discussion of lessons learned managing g change in LTC Operations

(1)

Management

Executing Operational

Change in LTC

A discussion of lessons learned

managing change in LTC

g g

g

(2)

Speakers

• New Business Underwriting

– Scott Sykora, VP Operations, Univita Health

Sco Sy o a,

Ope a o s, U

a

ea

• LTC Customer Service

Andrea Helms Director of LTC Customer

– Andrea Helms, Director of LTC Customer

Service, Bankers Life and Casualty

• Claim Vendor Management

– Christine Michals, VP of Health Operations,

CNA Insurance

(3)

LTC Operations

N

B

i

d U d

iti

New Business and Underwriting

(4)

New Business Underwriting

• Overview

– What is the proposed change:

a s

e p oposed c a ge

Changing the way g g y Long Term Care new business is administered. Bring straight through processing to LTC to help improve quality, decrease turn around time, while also decreasing expense.

– Why is the change required:

• Keeping up with best practices

• Improve metrics for productivity and cycle time a direct correlation • Improve metrics for productivity and cycle time, a direct correlation

to expense and customer satisfaction

• Auto ordering of Underwriting requirements • Simplified Underwriting OpportunitiesSimplified Underwriting Opportunities

• LTC industry is currently paper driven, self serve functionality is needed

(5)

New Business Underwriting

– Main challenges:

• Lack of technologies to support straight through processing • Decreasing application volumes to help justify investments • Decreasing application volumes to help justify investments • Training staff on new processes and protocols

– Describe the execution:

• Brown papered current flow(s)

• Identified pain points and opportunities • Evaluated and prioritized opportunities • Built CBA’s of each of the requests

• Created project time lines and task lists based on whether is was a procedural update or technology update

• Help monthly steering committee meetings to review progress and • Help monthly steering committee meetings to review progress and

obstacles

• Updated or created procedure and training documentation • Trained management team on active management techniquesg g q • Updated staffing models with new activities, KVI’s and reasonable

(6)

New Business Underwriting

– What was the result?

• Electronic application submission

• Auto ordering of Risk Management Information

• Improved Productivity

• Improved Quality of underwriting decision

p

y

g

• Improved consistency with production numbers

• Decreased expense, Increased Margin

(7)

New Business Underwriting

– Lessons learned:

• Easier to implement process change, you control it. Takes

longer if system enhancements are required, competing

priorities

p

• Involve as many of the stakeholders as you can, creates

buy-in

• Communicate progress and hurdles to the greater team

Communicate progress and hurdles to the greater team

• Active management is a must after rolling out an updated or

new process

• Force yourself to think about the long term objective it’s easy

• Force yourself to think about the long term objective, it s easy

to get pulled into the weeds and focus on one instance rather

than the overall picture

(8)

LTC Customer Service

C

t

S

i

Customer Service

Andrea Helms, Director of LTC Customer Service,

B

k

Lif

d C

lt

(9)

Customer Care Initiative

• Overview

– What was the proposed change:

a

as

e p oposed c a ge

– Restructured the LTC Customer Service department, including management changes and creation of an entirely new team

Why was the change required:

– Why was the change required:

• Negative media attention highlighted need for improved service • Staffing levels and allocation did not provide capacity for proactive • Staffing levels and allocation did not provide capacity for proactive

approach to customer service

• Departmental feedback mechanisms did not exist

• Prior structure did not provide adequate LTC-specific field supportPrior structure did not provide adequate LTC-specific field support • Desire to bolster culture of employee development and career

(10)

Customer Care Initiative

– Main challenge:

Change required reassignment of leadership, dissolution of one full team and selection of top performers for a new team, with short (60-90 day) time line

team, with short (60 90 day) time line

– Describe the execution:

• Crafted structural vision, involving key subject matter experts • Evaluated all existing resources and finalized staffing decisions • Drafted detailed communication plan

• Developed and delivered training

• Worked closely with IT to implement interim processes while finalizing long term plans

• Transitional approach to moving people into new roles, ensuring changes were seamless for customers and producers

changes were seamless for customers and producers

(11)

Customer Care Initiative

– What was the result:

• Some initial resistance but the change created a niche for top

performers who were excited to be a part of the initiative

• Role changes revealed some gaps in leadership and

Role changes revealed some gaps in leadership and

process, which we then had the opportunity to address

• Increase in “kudos” from customers and producers

• Positive feedback from associates who feel good about

working for a service oriented company

• Newly created feedback loop provided specific actionable

information for use in coaching discussions with associates

• Monthly average formal complaint volume reduced by half!

(12)

Customer Care Initiative

– Lessons learned:

• While the structural changes were the most visible

component of the initiative, engaging the entire department in

“

f

the “mission” from a cultural standpoint was equally as

critical.

• Repetition of overall mission was important throughout

i

l

i

d

hi

d

i

l

implementation in order to achieve and sustain cultural

change.

• Involving associates in conversations about procedural

t

f th i iti ti

t d b

i

components of the initiative promoted buy-in

• Implementing interim, IT-light changes while driving toward

long-term solutions allowed for quick wins

(13)

LTC Operations

Cl i

I

t I iti ti

Claim Improvement Initiative

Christine Michals, VP of Health Operations, CNA

IInsurance

(14)

Claim Improvement Initiative

• Overview

– What was the proposed change?

a

as

e p oposed c a ge

• Multi-phased roll outs to improve controls in key processes: – Calibrate Care Management Skills

– Provider Eligibility – Benefit Eligibility

– Why was the change required?

• Inconsistencies in claim process developed over the years • Inconsistencies in claim process developed over the years • Opportunities to increase productivity of technical staff • Multiple generations of policy forms

• Increased media and Department of Insurance scrutiny over long term care insurers

• Opportunity to better align company and its third party administrator’s toward common goals and objectives

(15)

Claim Improvement Initiative

– Main challenges:

• Required support and input of 2 separate and distinct organizations. • Needed to merge 2 separate cultures together to achieve resultsNeeded to merge 2 separate cultures together to achieve results. • Asked people to do things different then they always did it.

– Describe the execution:

• Identified industry best practices

• Formed a project team with members from both organizations • Appointed a Change Management Leader

• Worked to understand each others’ cultures • Worked to understand each others cultures

• Conducted weekly project management status meetings • Appointed change champions from within the organizations • Developed training and role playing exercisesg y g

• Still continue to conduct daily “case consults” • Developed scorecard.