“Risk” without Risk: How Caduceus Health Gained a 3-4x Efficiency Edge to Guarantee Outcomes

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THE CHALLENGE

Optimize WFH Output and Confidently Shift to Outcome-Based Billing

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Caduceus Health's value proposition to clients is rooted in efficiencies: we do the messy admin work, you focus on patient care. But with an expanding WFH policy and no system in place to see where productive time was breaking down, the company was against a wall. They had:

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• No infrastructure to support WFH transition
• No visibility into what remote and call center staff were actually doing
• No ability to spot bottlenecks and reallocate work at scale

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Fiercely-priced competition from overseas service providers was pushing the company to further optimize operations. They needed to find a way to deeply understand workforce productivity, from validating employees’ paid work hours to spotting process inefficiencies slowing down output. 

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On top of that, the company noticed a troubling pattern of young, talented managers quickly burning out. While their WFH policy was culturally appealing and financially beneficial, they lacked the hard data to spot who was on the cusp of collapse.

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Finally, without visibility and clear ops data, Caduceus Health couldn’t verify the effort needed to deliver on a given project. This limited them to the traditional hourly billable model, without the ability to reliably predict team time allocation in advance.

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THE SOLUTION

Reinvent Productivity Metrics and Uplift a WFH Culture

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Grant Knaggs, COO of Caduceus Health, admits he first turned to Insightful out of fear. Fear of being blindsided by a silent productivity slip. Fear that management had no idea if WFH was a success or a sham.

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But before deploying Insightful workforce analytics across his entire team of 200+, he started slowly. With a self-test. He ran it on his own performance, plus that of a trusted colleague, for several weeks.

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Once they saw the precision data capture themselves, Knaggs had the validation he needed to roll it out by department.

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The first systematic challenge was to understand if WFH hours were being reported correctly. They established a biweekly payroll review process to compare hours worked vs. hours paid. 

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The company discovered two sides to the productivity coin. On one side, a cluster of employees who were regularly working 3-hour days. On the other, a group of team members putting in 10-12 hours, overworking to the point of burnout. 

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The benefit to Caduceus Health was actionable precision: seeing exactly where performance was breaking, and allowing them to take immediate action. The company flagged managers to work with disengaged team members, increasing output and redistributing work accordingly. And it put work-hour caps on its overworked team members, protecting them from potential burnout. 

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And by leveraging Insightful for its entirely U.S.-based call centers, Caduceus Health didn’t just optimize operations, it gained a strategic advantage over competitors by maintaining a high-performing, data-driven workforce onshore.

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But the real power behind the shift away from manual time tracking, self-reported hours, and sheets of Excel data was an entirely new approach to how the organization works. Caduceus Health no longer narrowly focuses on measuring inputs. Insightful’s workforce analytics quickly enabled them to produce better outcomes at scale—with groundbreaking results.

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THE RESULTS

Confidence to Offer Outcome-Based Billing, and a Recruitment USP Nobody Dreamed Of

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Since turning to Insightful, Caduceus Health has achieved:

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• 20% productivity boost through smarter workflows and real-time insights
• 30% increase in employee engagement
• 3% call abandonment rate, down from 14%  
• 3-4x times the efficiency of competitors

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But the real sea change was this: Insightful’s analytics gave Caduceus Health so much confidence in their employee workflows and processes that they are now able to take on increased “risk” by guaranteeing outcomes to their clients. 

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Outcome-based billing (also called value-linked pricing) is becoming one of the defining commercial shifts in consulting and service-based professional work. The trend moves away from charging for inputs, such as hours worked, and toward charging for guaranteed results. 

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Caduceus Health is now able to offer clients a guaranteed cost number, a distinct advantage over competitors. Even better, the company is now moving towards making guarantees on what its clients will see in revenue. That’s how confident they are in Insightful’s workforce analytics data. 

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Simply put, "We know what works", says Knaggs. "We can be more aggressive in guaranteeing a cost.”

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And in addition to delighting clients with value-based pricing, Caduceus Health uncovered a surprising culture and recruitment win they didn't anticipate: flexible scheduling.

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This shift in how the business operates has created an engaged workforce who feel valued for their output, not their ability to clock a traditional 8-hour day. With more than 90% of their team being women, many of whom are parents, access to a flexible work schedule is priceless. Not only does it impact current employees, it's a unique selling proposition for future recruitment.