In a recent interview, ASC Chief Executive Officer Robert
Bennett spoke very candidly about how ASC came into existence,
offered unique insight into the company’s success,
and shared glimpses of the company’s plans for the
future. His answers to some of the more frequently asked
questions are summarized below.
How did ASC come into existence?
In May 2002, a group of private investors purchased the
assets of Willis Administrative
Services Corporation, and the new entity became known as
Alternative Service Concepts, LLC (ASC). In January 2006,
all outstanding shares of the company held by outside investors
were redeemed. Today, as a privately held, management-owned
organization, all partners are actively involved in the day-to-day
operations of the company.
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What is your assessment of the
claims service industry?
We see the TPA market as very fragmented
and characterized by only a few large players and many relatively
small players. Many employers view claims services as a commodity.
This is a logical conclusion given prevalent industry practices
including byzantine management structures that defy accountability,
vendor relationships that are primarily concerned with revenue
sharing in exchange for assignment volume, and complicated
contracts that mask the true cost of claims service. This
is fertile ground for the way ASC operates, and employers
have truly embraced our service philosophy and delivery system.
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How
have you been able to differentiate ASC from other TPAs within
the industry?
In our assessment of the industry and
in listening to employers through the years, we discovered
that employers value dedicated resources, measurable results,
management of outside services, and transparent pricing.
In response, we structured and staffed our company to offer
dedicated claims units, a scorecard system that grades adjuster
performance and incentivizes them for superior effort and
results, a program whereby outside resources are used based
only upon need, and a pricing model in which fees are completely
transparent with no hidden surprises. Our client retention
rate and growing book of business indicates our strategy
is on target.
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How does a dedicated claims unit operate?
In
addition to traditional service from local offices, ASC has
become known for our unique ability to establish dedicated
claims units for our clients. These arrangements allow us
to offer defined services with transparent pricing agreements
and no hidden fees. With a dedicated unit, our clients know
exactly what they are paying for up front.
When ASC establishes
a dedicated claims unit, we select a single claims professional
or group of professionals who are assigned exclusively to
the management of one specific claims program. ASC has the
ability to recruit qualified claims professionals in any
location throughout the nation. We have successfully staffed
claims units in all areas—from small rural communities
to large urban districts. Clients are encouraged to provide
input into the selection of individuals to staff their dedicated
units.
The staff is solely responsible for effective and
efficient management of the program. This includes handling
claims from initial notice through resolution. Claims adjusters
who work with only one client become vested in their business
and their success.
ASC analyzes the client’s
needs on an individual basis. We then design claims management
procedures to accommodate their unique environment, maintaining
a common philosophy and quality standards.
Many clients elect
to have their claims unit housed on-site at their workplace.
This enables claims adjusters to attend staff meetings, work
with loss control and safety consultants, and interface directly
with employees. We often participate in board meetings or
in some other advisory capacity. Being at or near the workplace
every day enhances our ability to make valuable contributions
to overall client operations.
For many clients, the establishment
of a dedicated claims unit is the optimal solution for their
claims program objectives.
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Describe the report card system
for which ASC has become known.
Our reasoning behind establishing
the report card system was to create a management process
that measured operational effectiveness. We wanted to be
sure our professional staff performed as promised.
We establish
performance standards with our clients based on customized
program instructions received from the client. Adjusters
are reviewed quarterly and graded on how well they adhere
to these standards. The client is provided with a copy of
the report card.
To further promote quality performance,
we have established an employee incentive program tied to
these report cards. Claims adjusters are monetarily rewarded
for achieving program goals.
The ASC report card system and
employee incentive program are complimented by regular on-site
audits conducted by our senior staff members. Centralized
management and supervision are key to maintaining quality
and consistency throughout our organization.
The accountability
and rewards system epitomizes a win/win situation for both
ASC and our clients.
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Why has ASC chosen not to assume ownership
in any type of cost containment vendor?
ASC is dedicated
solely to the management of claims. Our success is not based
on redirecting funds to another part of our company. We have
no financial interest in a managed care company, medical
bill review firm, preferred provider network, or any other
outside vendors.
Should we suggest that an added service
is in our client’s best interest, we can be objective
about the firm we recommend. We can provide an independent
assessment of the client’s specific needs and recommend
the vendor that is best able to respond to those needs. We
also believe vendors should be used very selectively and
only with the client’s prior approval.
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Describe
ASC’s transparent pricing strategy for dedicated units.
We
believe pricing arrangements should be flexible and should
reflect a client’s specific needs. Good faith estimates
agreed to up front and regular adherence to the efficiency
and scorecard system assure the client that the operation
will perform in accordance with established quality standards
and within financial specifications.
We acknowledge that
we want to earn a fair profit for services we provide. However,
we maintain a common belief that our clients have a right
to know how their money is being spent. Our clients know
their costs and our profit margin up front.
The result is
a true picture of actual expenses so that real comparisons
of effectiveness can be made. Our clients can easily assess
whether their claims operation is getting better results
today than it was yesterday.
Our clients steadfastly embrace
our transparent, no hidden fees pricing strategy.
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System
Design
ASC’s claims system is comprised of integrated
software modules based on shared files and a common database.
The software design allows all modules to run on most major
operating systems and servers. The system features a Windows-compliant
design with drop-down menus that offer easy access to every
function in the system.
We know timely and accurate claims
information is necessary to support a successful claims program.
ASC clients have on-line access to our claims system via
the internet and can access their claims information at any
time from any location. Real-time access to statistical data
and adjuster notes allows the client to quickly and easily
determine the current status of any claim.
Historical loss
data from other systems can be converted and loaded into
ASC’s system.
The user-friendly system features a flexible
reporting function that allows clients to produce their own
loss runs.
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