Gaining traction: How to discuss comprehensive sourcing with stakeholders

By:  Brian Murray, Senior Vice President, Optum

This is the 7th blog of our eight part series “Bending the Cost Curve with Comprehensive Sourcing.”

You may see the benefits of comprehensive sourcing, but what will it take to gain traction for the approach internally? Here is what payers tell us they want, and these insights may be useful for you in creating a case for comprehensive sourcing with your colleagues:

Payers tell us they want to modernize technology. They want a more functional, easy-to-use, agile environment. They want to lower operating expenditures and simplify their vendor list. They believe in the value of a streamlined cloud-based subscription model. And they want a trusted partner to deliver everything seamlessly and make it effortless on their part: One contract. One implementation project. One solution set.

They know their platform is archaic and unable to provide the functionality they need. Replacement means a capital expenditure and more uncertainty about whether the platform will deliver the modernization necessary to compete effectively.

To move forward, they see a path that requires multiple RFPs along with a lot of risk to implement and integrate multiple systems supported by vendors that don’t always work well together. According to Everest research, industry discussions on multi-vendor environments indicate a typical value erosion of 10-15%. (This number varies with the maturity of existing systems and processes.)

There is a different path

But you can make clear there is a one-stop approach that enables your organization to plug into everything needed to modernize for growth. Cloud-based claims adjudication. Work flow automation. Data. Analytics. Provider data management. Medical management. Portals and mobility empowerment for members and providers. All with a single pricing model and limited capital down payment. That means a very low entry price and a true subscription-based PMPM model.

Leading questions

Ask your colleagues if they are:

  • Struggling with maintaining modern technology.
  • Letting administrative expense limit their growth, profitability and innovation.
  • Ready to stop settling for a sub-optimal, point solution in favor of a comprehensive strategy.

These questions (and comprehensive sourcing as the answer) will resonate with the c-suite. What’s more, if your organization is contemplating an acquisition, and acquiring technology debt to do so, this is an ideal opportunity to evaluate a comprehensive sourcing model that provides a cost efficient modern operation. In doing so, you create a path for the rest of the organization to follow.

Timely transformation

Whether it is technical debt, financial health, strategic growth or help with an acquisition, breakthrough cost savings and comprehensive sourcing delivers what you need. We have used our size, scale and health care expertise to operationalize that approach. And we have seen what it can do for payers ready to transition to a growth mentality.

Look to Optum as your trusted partner to help you make the case for comprehensive sourcing. Learn more in this blog series and the resources below.



Read the Everest White Paper

Addressing Payer Costs through a Comprehensive Model: A Blueprint for Achieving Breakthrough Cost Savings

Watch Jimit Arora, Partner, Everest Group

Identifying the Most Optimal Sourcing Model from a TCO Perspective

View the Everest Infographic

Payers Can Save Up to 7x More through a Comprehensive Model

Connect with Optum to modernize your health care ecosystem


Catch up now on the articles you’ve missed in our “Bending the Cost Curve with Comprehensive Sourcing” series:

Part 1: A case for thinking big: Driving breakthrough cost savings 

Part 2: Beyond the back office: Why medical cost is so often overlooked

Part 3: Enabling success: The importance of IT infrastructure

Part 4: Beyond BPO: The next evolution to yield greater cost savings

Part 5: Reducing Total Cost of Ownership: Business intelligence is the differentiator

Part 6: Barriers to best-in-class: The case for articulating your full value

Part 7: Gaining traction: How to discuss comprehensive sourcing with stakeholders

Part 8: Achieve breakthrough cost savings: Five first steps


About the Author:

Brian Murray, Senior Vice President, Optum

In his role as senior VP, Brian Murray works with health plans and providers to develop innovative new outsourcing models that focus on growth, cost containment and investment in local communities. He joined Optum in 2006 and has held numerous leadership positions including managing director of the operations and technology consulting practice; chief growth officer of Optum consulting; and general manager of the risk optimization and growth business. Prior to joining Optum, Brian spent much of his career in management consulting with Deloitte & Touche and Cap Gemini Ernst & Young, focusing on strategy, business transformation and ERP system implementation.

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