A northeast health plan takes a look at insourcing behavioral health to improve quality and services and to increase their ROI

Our client’s need

A northeast health plan with almost 500,000 members was interested in whether they should insource their behavioral health needs. The health plan wanted to receive qualitative research and to better understand the return on investment (ROI) of insourcing versus outsourcing.

Baker Tilly solution

Baker Tilly completed a two-phased approach resulting in recommendations to insource behavioral health based on qualitative research, as well as an analysis of the ROI from four perspectives:

  • Administrative value/efficiencies
  • Unit cost value/efficiencies
  • Behavioral health utilization
  • Medical utilization for behavioral health members

Results achieved

The qualitative research and ROI analysis helped the health plan see that they could administer insourcing the benefit at a cost comparable to what they are paying their external resource. Insourcing the benefit may also yield unit cost improvements of up to 10 percent and utilization improvements up to 3 percent. In addition, the health plan could present a more provider-friendly, less corporate approach to clients.

For more information on this topic, or to learn how Baker Tilly healthcare specialists can help, contact our team.