Cost Mapping: Aligning Your Costs With Sherlock Benchmarks
It is sometimes helpful for Sherlock Company to align your costs into the Sherlock Benchmark classifications. Perhaps organization band-width is constrained: while Sherlock would need to become familiar with your costs, we are steeped in our classifications. Alternatively, it is sometimes beneficial to have this alignment performed by an independent analyst. It typically takes us approximately three man-weeks to complete this mapping.
We have performed this for three publicly traded companies, two delegated-model IPAs, a self-contained, state-sponsored health benefit program, a recapitalization to create a new non-profit serving only government members and two other health plans.
Our mapping can be helpful in many ways. For budgeting and planning, we can accelerate your process to move to the implementation of the results of the Benchmarks. For more complex situations, our independent view can help assure that outsourced relationships are reasonable or assuring that intersegment costs reflect are reflective of what would exist on an arm’s length basis. This can be especially helpful if it is necessary to assure a regulatory agency on these matters.
Please see an example of the process here.