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Regence Group

Regence Group Improves Portfolio Performance, Saves $1.2 Million

Computerized maintenance and information management, plus standardized practices, cut costs for a multi-office insurer

The Regence Group and its affiliated companies comprise one of the largest health care insurance organizations in the Pacific Northwest, serving more than 2.5 million members from offices in four states. In an effort to identify long-term cost savings and optimize operations, Regence selected Johnson Controls Global WorkPlace Solutions to provide integrated real estate and facilities management of its 1.5 million-square-foot-portfolio. As result, Regence saved $1.2 million in direct and avoided costs in the first year of the contract.

Formed primarily by the merger of smaller insurers, nonprofit Regence now serves members from 20 locations in Oregon, Washington, Idaho and Utah. Throughout these mergers, Regence worked to consolidate business operations and services to drive efficiencies and consistencies that benefit its members. Similarly, the focus of the facilities management contract with Johnson Controls is to bring efficiencies and consistencies to its facility operations.

With each facility operated like a separate company managing its own buildings and vendors, Regence couldn’t easily identify opportunities for improved performance and cost savings. “We first needed to get an accurate overview of our assets and standardize maintenance procedures. Johnson Controls provided the experience and tools we were looking for,” says Senka Lenn, director of corporate real estate and facilities management for Regence.

Johnson Controls began by identifying and inventorying mechanical equipment at each location with a computerized, maintenance management system (CMMS). A dedicated team of Johnson Controls professionals is responsible for operations and maintenance at each facility, self-performing approximately 70 percent of the work across all facilities. In addition, Johnson Controls implemented its Sequentra® information management technology to efficiently manage the information and processes across the Regence portfolio. Sequentra allows Johnson Controls, Regence and its tenants to collaborate and share data regarding projects in real-time from a single, fully configurable, Web-based interface.

Standardized maintenance practices across the portfolio, eliminate the need for local procurement and vendor management, create labor efficiencies, and reduce and regulate costs. With CMMS, preventive maintenance plans improve asset performance and maximize lifecycle. 

Notable key performance indicators and savings in 2010 include a 99.6% on time completion rate for preventative maintenance, and a 100% OSHA recordable rate (zero-incident) for safety performance.
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