Alberta Blue Cross
"Before Prodacapo, the financial planning process was manual, complex and spreadsheet based."
Manager of Financial Planning and Analysis, Alberta Blue Cross
On-time, within budget and increased scope
The project team consisted of Alberta Blue Cross staff complemented by contractors and Prodacapo consultants. The project started in September 2015 and was completed by the end of the same year, taking four months in total. This was followed by three months of testing and fine-tuning before the system went into operation at the beginning of April 2016.
The project was on-time, within budget and the deliverables and scope exceeded the initial request.
The scope extended
Initially the focus was to get a good understanding of the indirect product and customer costs. Later, after discussions and understanding Prodacapo’s features, the scope was extended with:
- profitability analysis
- tax recovery (sales tax)
- direct cost (claims)
- specific customers instead of customer types only
Expectations from implementing ABC
- A better understanding of where their resources end up.
- A better understanding of which products are profitable.
- A better understanding of which (type of) customers are profitable.
- A smoother monthly run to produce tax and profitability reports.
The most important results
- Customer segment profitability
- Customer profitability; Affecting pricing and product specialization
Alberta Blue Cross has gained a better understanding of the costs that are consumed by our customer segments from their supporting business areas. This is very important because of the many supporting business areas that are shared amongst the customer segments.
The business units are held accountable to their contribution margin, which causes them to more actively revisit the activities to assess their effectiveness.
The Prodacapo costing model gives key stakeholders of each segment the opportunity to really understand supporting activities and costs required to deliver our products.
With the Prodacapo model, Alberta Blue Cross better understands the true cost of each customer. It gives them better insight into to the client’s consumption of costs, while isolating those who have the most or least amount of costs (either monthly, Year to Date or yearly). Consequently, Alberta Blue Cross can respond according to that information.
What our customers say
"Implementing Prodacapo was a strategic decision we made to respond to the new market conditions for the healthcare sector in the Netherlands."
"At the early phase of the project, some of the departments were quite hesitant in participating, but as soon as we were able to present the first results of our project the doubtfulness was replaced by enthusiasm."
Niek Bossché & Paul Steinbush
Erasmus Medical Centre, The Netherlands
"Prodacapo provides us with great information and more precise patient costing data."
"It's also very important for us to compare and analyze on different levels and in between different departments. Prodacapo gives us better management information of for example resource consumption per patient treatment."
Reidun Martine Rømo
Ekonomichef, Helse Midt-Norge
”Using Prodacapo's TDABC methodology (Time Driven ABC) means we have got a an easy-to-use costing tool, a costing model that is easy to understand and a unified method to track the patient level costs.”
Head of patient level costing, County council of Jämtland, Sweden