Case Study: Health Care Service Corporation improves cash forecasting and generates $140M in investment income with Kyriba

Health Care Service Corporation - Customer Case Study

Health Care Service Corp. (HCSC), a Chicago-based mutually owned insurer and the fourth-largest health insurer in the U.S., faced a treasury operations overhaul as the Affordable Care Act reshaped the industry. With more than 150 bank accounts, 14 bank portals and 70 investment accounts, the team relied heavily on spreadsheets and manual data entry and needed to centralize information, automate routine tasks and improve cash forecasting to better manage working capital and a $10 billion investment portfolio.

HCSC implemented Kyriba with a custom solution that integrates 13-week operating and investing forecasts, worked with its custodian on investment reporting using custom BAI codes, and built a regression model for operating cash flows now being moved into the system. The improved forecasting shrank the working capital cushion from $500 million to $200 million (with plans to cut it to $50–100 million) and enabled longer-term investing that generated an estimated $140 million in additional investment income.

Health Care Service Corporation

David Deranek

Director, Enterprise Treasury Operations