What Healthcare Consolidation Means for Vendor Management

What_Healthcare_Consolidation_Means_for_Vendor_Management

Mergers, mergers and more mergers. As acquisitions and consolidation continues in the benefits space, what does it all mean? How does it actually affect the rest of us, and how we manage our vendors?  

 

What's at Stake?

Strong reactions to the proposed Aetna and Humana merger have highlighted some important potential trends that are challenging us to rethink vendor management.

A majority of 100 employers surveyed (54%) by Aon Hewitt are considering a couple of strategic options, both of which directly affect vendor management best practices:

Sexy_Stat ***Infographic statistics are a direct quote from Aon Hewitt survey as cited by Employee Benefit News

While the effects of this particular merger, and other benefit space consolidations (CVS & Target Pharmacies and Willis & Towers Watson) won't be known immediately, there is a clear potential impact on future benefits strategy.

Implementing either strategy means one thing for certain: RFIs & RFPs. And no matter what kind of feelings those words dredge up for you (anxiety, stress and "reinventing the wheel," just to name a few), if your organization plans on reassessing carriers, HRIS or Benefits Administration systems, you'll probably need to issue them. The question is, how to do it efficiently? 

 

 

The Challenge

The process of assessing and selecting vendors (especially HR software), is often riddled with non value-added practices. And the move toward putting HR Tech in "the cloud" has added more options and further complicated the process. 

Data that's being analyzed (across vendors & carriers) continues to grow and change constantly. Now more than ever, it's important for buyers to be able to quickly and thoroughly filter through options, and make the right decision for your organization.

The key to an effective RFP process is having accurate data to compare, allowing you to make sound decisions. Unfortunately the traditional RFP process as it's conducted today, still relies heavily on manual tasks and information gathering.

The greatest risk of this current process, is that it's slow to react. Bottom line, it's a lag you can't afford. Managing data manually means "slow data". It quickly becomes obsolete and can ultimately derail selecting the right vendor.

What Healthcare Consolidation Means for Vendor Management pull quote

If employers and those who represent them (brokers/consultants) want to make vendor management more effective, to concisely compare and shortlist, then they need access to real-time data. 

And the right RFP software can give us that instant information you need. 

 

 

The Takeaway

If your organization is going to reassess its health & benefits strategy, make it as easy as possible. Make sure you (and your broker/consultant) are equipped with the right tools, and asking the right questions to navigate the vendor selection and RFP process.

 

See how vendor management software simplifies "process," getting you back to decisions.

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***Image Credits: Anna Spady, via Canva