Case Study: Leading Insurance and Healthcare Solutions Company achieves $1.3M in services procurement cost savings with Magnit

Leading Insurance and Healthcare Solutions Company Gains $1.3M in Services Procurement Cost Savings

Leading Insurance and Healthcare Solutions Company, a mutual insurance holding company with five operating companies and more than 75 years in healthcare, relied on a blended workforce of full-time and non-employee workers and needed a consultative contingent workforce management solution that integrated with its external VMS. Their incumbent MSP was not strategically suited to evolving needs, so they selected Magnit’s purely vendor‑neutral MSP to reposition and scale the program.

Magnit conducted a comprehensive analysis, identifying that suppliers were submitting workers via SOWs that added a roughly 30% markup and unnecessary compliance risk, and then implemented SOW conversions, rogue‑spend identification, rate‑variance education, supplier management, and VMS customization. As a result, Magnit generated $1.3M in services procurement cost savings, converted more than 150 workers from SOW to the program, reduced overall risk, and increased visibility into the contingent workforce.