Ventiv Technology

VENTIV TECHNOLOGY ////////////////////////////////// 3SIXTY º | 5 Since bringing administration of its general liability and druggist liability (GL) claims in house, however, Rite Aid has generated seven-figure, straight-to-the- bottom-line savings—annual savings that amount to about half of what Rite Aid used to pay TPAs. Rite Aid determined it would be more cost effective to bring GL and druggist liability claims in house. In addition to the savings cited above, Rite Aid is also see- ing a reduction in its average cost per claim. How did Rite Aid get to this improved position, and what lessons can other large retail organizations learn from their story? Rite Aid has been a Ventiv RiskConsole client since 2009. In 2012, Rite Aid brought on 15 in-house adjusters and began day-to-day claims administration in RiskConsole. To enhance the long-term performance of its in-house claims unit, however, Rite Aid decided to implement the Ventiv iVOS claims adminis- tration system in 2013. Yet as Jason Heffleger, busi- ness analytics manager with Rite Aid, told an audience of claims managers at the 2014 Experience Conference, RiskConsole remains a vital part of Rite Aid's in-house claims administration. Whereas iVOS has helped to further streamline claims administra- tion, RiskConsole generates consolidated risk management reports that have helped Heffleger and his risk manage- ment colleagues improve the monitoring and management of their claims administration. THIS IS HOW THE RITE AID SYSTEM WORKS: // Stores report some 1,700 inci- dents per month by phone to a third-party intake center (less than 10 percent of incidents reported become claims). // The third-party intake center makes a daily feed of all incidents reported into iVOS. // Examiners manage incidents and claims in iVOS (every incident is investigated). // RiskConsole receives a monthly feed from iVOS from which Heffleger runs a sophisticated reporting regimen. RiskConsole also gets monthly feeds from six different TPAs, which still handle workers' compensation and auto liability claims for Rite Aid. And finally, Heffleger manages the monthly feed into RiskConsole of Rite Aid exposure data, including headcount, pay- roll dollars and payroll hours, and prescription volume and pharmacist information. "We're dropping a very large amount of data into RiskConsole in order to generate our consoli- dated reporting," Heffleger notes. "We have a lot of different reports produced from this data, including VAO [valued as of] reports and litigation reports. As a client of the combined RiskConsole and iVOS systems, we have a lot of flexibility to decide what data goes from our claims administration system into our RMIS. We take just what we want and use it in the reports we want to produce." As for the process of moving claims administration to iVOS, Rite Aid had a very ambitious schedule, and Ventiv met it. iVOS went live in six months for Rite Aid. Notably, Rite Aid uses iVOS through the Ventiv-hosted RIScloud technology infrastruc- ture, which helped with speed of implementation. Solution Profile We are dropping a very large amount of data into RiskConsole in order to generate our consolidated reporting. JASON HEFFLEGER, BUSINESS ANALYTICS MANAGER, RITE AID UNTIL 2012, DRUGSTORE CHAIN RITE AID'S SPENDING ON FEES to third-party administrators ran well into seven figures. With 89,000 associates and 4,500 stores nationwide, it's easy to see how claims handling fees could rack up.

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