CASE STUDY FACTS:

CLIENT: Western Guaranty Fund Services

DIGITECH SYSTEMS RESELLER: Rocky Mountain Microfilm and Imaging

PROBLEM: Needed a way to receive, process and manage new claim files electronically

SOLUTION: PaperVision Enterprise, PaperVision^® Enterprise WorkFlow and PaperVision^® Capture

RECOGNIZED BENEFIT:
Implemented an electronic claims processing system that enabled the company to increase efficiency and save money.

Western Guaranty Fund Services (WGFS) is an insurance guaranty organization that processes claims from insolvent insurance companies and protects policy holders by paying claims. WGFS' document-driven business is focused on efficiently handling workers compensation medical bills, insurance claims correspondence and legal records. With the industry trends moving toward paperless systems, managers at WGFS knew it was only a matter of time before they would be required to process electronic claim documents. After years of using a paper-based system, WGFS needed an Enterprise Content Management (ECM) solution that would prepare them for the future.

Since adopting PaperVision Enterprise, WGFS has enhanced claim processing efficiency, saved $84,650 on labor and shipping and now accepts new claim document loads electronically.

The Situation

Formed in 1984, WGFS (www.wgfs.org) is a voluntary, non-profit unincorporated association that manages and pays claims for six property and casualty insurance guaranty associations across the U.S. Operating in six states and employing as many as 30 people, WGFS provides management and claims supervisory services to its guaranty fund members, assists in the discharge of statutory responsibility and pays covered claims against insolvent insurers.

When required to process claims for insolvent insurance companies, WGFS receives thousands of claim documents in a matter of weeks. Previously these documents created challenges for the organization. A single claim file could include up to seven boxes of documents dating back 25 years or more. As a result, storage was an issue. The file room was covered with wall-to-wall filing cabinets and new files were sometimes stored in staff offices.

Additionally, WGFS had to make sure they had sufficient staff to efficiently manage newly acquired claims. “We must process new claims paperwork immediately, because insurance claimants, especially those on permanent disability, can’t afford to miss their checks,” said Ed Volk, manager of IT. A core number of claims and other employees are kept on staff at all times, but more people were sometimes needed to manage higher workloads. In times of high insolvencies, the staff grew to as many as 30 people and payroll expenses skyrocketed. Sharing information was a burden, too. If an attorney or nurse case manager needed a copy of a claim file, an employee lost an average of four hours photocopying as many as 15,000 pages and shipping out large boxes of documents.

While the high cost of their paper-based system compelled WGFS to investigate ECM technologies, it was the growing trend of electronic documents that drove Dave Edwards, president of WGFS, to commit to the purchase. “We knew we would recognize benefits from this technology, but we really needed to be prepared for the future of our industry,” he said.

The Solution

“As a fiscally responsible non-profit organization, we chose not to just buy the popular ECM solution that other insurance organizations were using. We decided to shop around,” said Volk. WGFS used that popular solution as a benchmark to thoroughly test three of the 12 technologies they investigated. “PaperVision Enterprise excelled in every category,” said Volk. “We chose it, because it could be used in any department and it didn’t require too much of our IT resources or support from the manufacturer. Installation was easy. We did it ourselves in less than a week.”

WGFS hired their Digitech Systems reseller, Rocky Mountain Microfilm and Imaging (RMMI), to help them transfer all active paper-based claim files to electronic documents. RMMI is in the process of scanning 1.5 million images, which will soon be eliminated from the filing room and immediately available for retrieval from the ECM system. New incoming documents are scanned and indexed by WGFS staff using PaperVision Capture. They also use PaperVision Enterprise WorkFlow (WorkFlow) to automate all document-driven claim processes.         

Recognized Benefits

Today, WGFS receives, manages and promptly processes all types of electronic claim files. "Our claims database is the core of our business. We made it one of our goals to create a system to handle a paperless liquidation and we did it. Our files and bills are more up-to-date now and we're prepared to take on electronic claim files and larger projects altogether," said Volk.

Time savings and ease of communication have also significantly improved. All 13 employees have active claim files at their fingertips, and sharing information is much easier. Employees can instantly search and retrieve documents, email records or mail large files on CD in minutes. This saves more than 500 hours in productivity each year, a savings of $64,000 annually. Plus, it enables WGFS to avoid $20,650 in annual printing and mailing costs.

Claim and bill processing is much faster now. "We have one large, relatively complicated process, but WorkFlow makes it all fast and simple. It breaks down each step and shows us where things are in the process," said Volk. WGFS uses WorkFlow to guarantee accuracy, to accelerate bill approvals, to manage bill re-pricing and to ensure all correspondence has been reviewed. With all the productivity gains, WGFS can do more work with fewer people. In the future, when WGFS takes on a large insolvency, they will handle the workload with a smaller staff, creating a potential payroll savings of $80,000 annually.

WGFS also expects savings to continue as they roll out the system to their accounting department and others. "We're taking a phased approach to this. Eventually every department will manage their documents electronically," said Volk. "A key part about moving forward is that we don't have to call RMMI or Digitech Systems to keep expanding the system. It's scalable, so it's easy to add new users and projects ourselves. PaperVision Enterprise is a major contributor to our disaster recovery plans as well. We can't wait to see what other benefits will come with the expansion."

About Rocky Mountain Microfilm and Imaging

Rocky Mountain Microfilm and Imaging Inc. is a full-service electronic document management firm. For nearly 30 years, they have been dedicated to improving the efficiency, productivity and cost-effectiveness of businesses throughout Colorado. Their pledge is to provide companies with a flexible solution that promises security, fast disaster recovery and easy integration with their current systems. They serve a wide range of industries including healthcare, financial services, education, government and more.

To learn more about RMMI, call 303.427.0625 or go to www.rmm-i.com.

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