Challenge: Multiple commission management systems with disparate databases created high inefficiency, duplication of effort and unsatisfactory broker communication
Strategy: Consolidate all payout processing and producer communication onto a single commission and incentive compensation management platform
Result: Ability for PHP to easily and effectively calculate payout amounts, issue payments to all producers, track results and communicate with brokers using a single system
Client Background
Founded in 1983, Physicians Health Plan of Northern Indiana, Inc. (PHPNI), is a physician-sponsored not-for-profit health maintenance organization focused on preserving the community's access to quality, affordable healthcare. PHPNI is locally sponsored and governed by area doctors and business representatives committed to supporting the patient/physician relationship and wellness healthcare options for better health choices. Prior to working with ActekSoft, PHPNI managed their sales commission and incentive compensation program for internal account executives, account managers and external brokers using three separate legacy systems and three different manual processes.
Major Inefficiencies
Attempting to manage the commission payout process using disparate systems created serious inefficiencies and data redundancy for PHPNI. With data residing in multiple silos across the company, PHPNI staff needed duplicate processes to track broker information across different departments including sales, operations and finance. In addition, cutting checks to brokers, transferring bank files and mailing statements using different platforms created additional frustrations and higher administrative costs. Broker online access to commission information and historical statements could not be supported under the current system.
Consolidation and Simplicity
To improve efficiency and simplify their operation, PHPNI business and IT leaders determined the need to consolidate all commission and incentive compensation payout processing onto a single system. PHPNI selected ActekSoft’s ACom3 System as the core platform to improve automation and reduce complexity in this operation. ACom3 is a highly-configurable system built to support rapid deployment, ease of use and reduced operational complexity.
“The ActekSoft team pushed us as an organization at every juncture of the project to ensure the end product was the most robust possible,” said Dustin Crider, corporate controller for PHPNI. “When we began looking at systems, payment of internal account executives and account managers was not within the scope of our project plan. The ActekSoft implementation team identified this as a possibility and, as a result of their desire to deliver a product that addressed as many of our business needs as possible, this expanded capability to pay all internal and external producers using ACom3 was included in the project scope.”
“The level of customer service provided by the ActekSoft implementation team went beyond anything I have experienced in quite some time,” said Crider. “Anyone looking into the ACom3 system can rest assured that ActekSoft consultants will ensure the project gets done and meets or exceeds expectations.”
Better Productivity and Happier Producers
Working together, ActekSoft and PHPNI successfully migrated all of PHPNI’s commission and incentive compensation payout processing onto the ACom3 platform, eliminating the need to maintain separate databases and processing systems. Simplified integration enables PHPNI to capture data from any number of external sources into a single database. Extensive configurability, workflow and automation features help PHPNI staff achieve greater productivity calculating payout, issuing checks, transferring funds, mailing statements and tracking results. “I am extremely pleased with the efficiencies we have been able to realize in these areas of operation,” said Crider.
“Comments from our brokers on the quality of our new commission statement format have been very positive,” said Crider. “One of our brokers recently told us that our commission statement is the best format of all the carriers he works with.”
“Moving all of our processing onto the ACom3 system will enable us to eliminate the duplicative efforts previously needed to keep track of broker payout and performance information,” said Crider. “Overall, I am very satisfied with the ActekSoft team. They have worked very hard to get us where we are today with the ACom3 System.”
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