Harvard Pilgrim Health Care, a major Massachusetts health insurer, acquired several health maintenance organizations in the 1990s, but failed to effectively integrate the information systems of the organizations. This resulted in confusing duplicate general ledger systems that led to a $227.4 million loss in 1999 alone.
After state officials appointed a receiver to take control, Harvard Pilgrim began outsourcing claims processing and IT and completely revamped its finance function. By 2000, Harvard Pilgrim had reduced its net loss to $9.7 million, and by the end of 2001 the company was again posting positive financial results, a trend that has continued since.
Today Harvard Pilgrim has an enterprise data warehouse (EDW) from Teradata that provides sophisticated analytics and decision support. The Teradata platform allows a greater number of users to access data and information and has been a driver of significant cost savings as well as a means of providing more business value from Harvard Pilgrim's enormous data assets. HPHC has deployed an end-user adoption program for its EDW-driven analytics initiative and is rapidly increasing the number of users on the EDW.
