Challenging the Healthcare Status Quo
At a glance
The Langdale Company
More than a century ago, John Wesley Langdale planted the foundation for The Langdale Company with one crop of turpentine timber. Five generations later, the company has grown into a highly diversified enterprise that includes forestry, forest products and other affiliated companies that span the automotive, banking, hospitality and land development industries. Since its start in 1894, the company has focused on reforestation and stewardship, community service and civic responsibility, and sustainability and innovation, earning a strong reputation as a progressive company who “does things right.”
In 2007, the company’s benefits manager was struggling to control the costs of the health plan. One of the biggest frustrations with their Preferred Provider Organization (PPO) plan was the lack of data and utilization metrics that would help her understand the key areas that needed to be addressed. Economic challenges and industry pressures pushed The Langdale Company to seek alternatives for their health plan. Barbara Barrett, Director of Human Resources and Benefits, took matters into her own hands. Through a broker introduction, Barrett approached ELAP Services co-founders Steve Kelly and Woody Waters who stepped up to design a customized self-insurance program to address the company’s needs. The program included custom plan design, independent claims review and auditing services, and member advocacy services. This new plan effectively altered the trajectory of their healthcare costs and returned The Langdale Company to its competitive position in the industry. Just as importantly, the roots of a successful business relationship were planted.
Barrett spearheaded the move to include a reference-based pricing solution add-on to their self-funded health plan, and the changes paid off quickly. Almost immediately, Langdale realized two major benefits: they would cut their costs significantly, and they would now have the data and trend information to drive better programs for employees. Case in point: Langdale learned that hospital costs accounted for 65% of their total healthcare spending which led to improved communication and decision support for employees. Implementing the ELAP solution gave The Langdale Company the information and control they needed to get their health plan back on track for the long term.
As ELAP’s first and oldest client, it was a bold move that’s paid off. The partnership has saved the company significant dollars over the years, and enables them to keep employee member premiums low for covered employees. Keeping true to its core values, the company is doing things right and providing education on how to understand hospital costs and what covered members need to consider when seeking care. Barrett also cites ELAP’s Member Services Team as a major plus for members. “The Member Advocates always get high marks from our employees,” says Barrett. “They’re compassionate about what they do, they understand the members’ concerns and it means a lot.”
|SAVINGS||26% compared to a PPO*|
|TOTAL SAVINGS||$5.3MM since inception compared to a PPO*|
|12 YEARS||using reference-based pricing|
*Savings based on estimated PPO charges. Actual results may vary and are not guaranteed.
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