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PAG helps medical-services client quickly build $50M loan program

Home > Health Care > Underwriting Program Design > PAG helps medical-services client quickly build $50M loan program

August 10, 2022

Case Studies

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Health Care

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Underwriting Program Design

Challenge:

Predictive Analytics Group (PAG) was engaged in May 2021 by a U.S. medical-services group that provides outpatient plastic surgery, dental cosmetic surgery, and vision surgery (including Lasik). Our client wanted to offer term loans to help its customers finance these services. The client faced several challenges — multiple legacy systems whose data did not talk to each other, no data infrastructure, and little to no reporting or analytics. PAG was asked to quickly resolve this problem on a fixed monthly budget to help the client move in a more structured, data-driven manner.

PAG Solution:

PAG leveraged our internal Enterprise Data Platform, GOBLIN, to help consolidate data housed within five different systems. GOBLIN, which was built by experienced team members from the healthcare industry, is HIPPA compliant and was able to merge all five data streams into a relational database infrastructure, allowing both the client and PAG to access the full suite of data the client had acquired over the years.

Next, after passing a HIPPA audit, PAG built a robust underwriting model to help the client offer term loans to customers while managing risk and line/term assignments to help patients finance their medical expenses.

Finally, PAG built a comprehensive set of performance and monitoring reports that enable the client to manage the portfolio’s risk through monthly Corporate Risk and Pricing Committee meetings. PAG has served as an advisor on these calls for the past 12 months to help the client make informed decisions on managing its growing portfolio.

Client Benefits:

1. PAG consolidated five data streams into an easy-to-navigate, relational database used by both the client and PAG.
2. PAG helped the client pass an internal and external HIPPA audit for data privacy and information security.
3. The underwriting model exceeded Year 1 growth targets by 8% while simultaneously coming under projected losses by 5%.
4. PAG built the infrastructure for the program in less than 90 days and helped build the portfolio to $50 million in under 12 months.
5. The client has, with PAG’s assistance, hired a five-person risk department and used our initial reports to monitor the portfolio’s performance and make recommendations to senior management.

Client Satisfaction:

The client has re-engaged PAG to provide a PAG subject-matter expert for its Corporate Risk and Pricing Committee to help guide account-management strategies while ensuring that what is learned is passed back to the Underwriting team. These wins are seen in the initial book of business for future portfolio bookings.

Managing Partner of U.S. Operations

Mr. LaRoche is a resourceful, results-oriented Executive with over 25 years of financial services experience; emphasizing collections risk management, dialer operations, MIS and reporting analytics, acquisition strategies, loss forecasting, credit policy, account management strategies, portfolio conversions, due diligence, and collections operations management. He also has over 15 years of direct risk management experience, with 3 years of collections line management experience possessing excellent analytical skills and the ability to manage diverse groups in strategies, modeling, collections, dialer operations, loss forecasting/loan loss reserve modeling, financial analysis, operations and loss avoidance.

David started his career in 1997 as a customer service representative for Travelers Bank. Since then, he has held the following senior positions:

  • Director, US Operations for Bridgeforce Consulting
  • Sr. Director and Call Center Leader for American Express
  • SVP. Collections Strategy and IT leader for Washington Mutual

Chief Risk Officer

Dale Hoops has over 25 years of experience within the financial services industry, with a focus on Risk Management, Collections, Fraud, Account Management Strategies, Loss Forecasting, stress testing, and economic analysis.

Dale started her financial services career in 1996 as a part time customer service representative and teller in a small financial center while attending the University of Richmond. Her career has included senior roles at Bank of America, Citi, and MBNA America. She has experience with multiple retail products, including consumer and commercial cards, private label and co-brand, deposits, vehicle lending, mortgage, and home equity. Her key strengths have been identifying opportunities for improvement through business analysis, strategy development, and risk governance.

In addition to her professional career, Dale has extensive leadership experience with non-profits with event planning, policy, budget, and audit management. She is a member of the Board of Directors for the Girl Scouts of the Chesapeake Bay, which serves 8,000 girls in Delaware, Maryland, and Virginia. She is the former President, Vice President, and Treasurer at a local Parent-Teacher Association, former community pillar chair for Bank of America’s LEAD for Women Delaware network, and served on the leadership team for the Field of Dreams Relay for Life event to raise funds for the American Cancer Society.

Chief Data and Analytics Officer

Mr. Ridgeway has over 30 years of experience within the financial services industry, including Risk Management, Finance, Project Management, Compliance, MIS, IT & Operations. He has held senior roles at several of the top 5 Banks, including MBNA, Wells Fargo & Citibank. Dee has expertise in Risk oversight and a wealth of knowledge in the regulatory footprint (CFPB / OCC / FRB) in financial services. He has hands-on knowledge in the strategy world with numerous credit products including: credit cards, auto lending, mortgage and home equity, and unsecured lending. Dee is a co-founder of Predictive Analytics Group, worked as a Senior Consultant for Hoops Consulting, LLC., and owned & operated Mayflower Analytics LLC.

From a Risk Management perspective, Dee has experience in portfolio management in credit underwriting and loss mitigation during several growth cycles and economic contraction periods. He understands the needs and partners well with operational risk, modeling, and loss forecasting risk functions.

Dee is a SME on risk data strategy (data architecture, data management, and systems integration) and often creates a "passable bridge" between Risk and IT that translates business needs into executable business plans.

From an MIS, reporting, and portfolio analytics perspective, Dee has a proven track record of designing portfolio reporting that meets executive and end user needs that often have been labeled the "gold standard."

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CEO and Chief Strategy Officer

Mr. Hoops has over 25 years of experience within the financial services industry, including Credit Collections & Fraud Risk Management, Business Operations, Control &Compliance, Strategic Planning, Forecasting, and Marketing Analytics. He has served as a Chief Risk Officer for Barclaycard US Partnerships, a Global Scoring Head at Citibank, and a Site President for Wells Fargo Financial. Steve is a co-founder of Predictive Analytics Group and has owned & operated Hoops Consulting, LLC for the past 4 years.

Steve started his financial services career in 1993 as a part-time telemarketer while attending the University of Delaware for his Business Administration degree. Mr. Hoops has spent his 25-plus years within the industry building best-in-class operations with each company he has supported. His career has been highlighted by leading several large functions for several Tier 1 and Tier 2International Banks, including:

  • Credit Policy (CRO for $20B co-branded portfolio, Barclaycard US partnership)
  • Credit Policy (SVP for $28B retail Co-brand & Private Label portfolio, Citibank)
  • Loss Forecasting / Loan Loss Reserves ($30B Consumer portfolio, Citi-Financial)
  • Collections Risk Management ($70B Co-brand & Private label portfolios, Citibank)
  • Modeling ($30B Consumer Loan & sub-prime Mortgage portfolio, Citi-Financial)
  • Collection Operations (Head of 410 person operations center, $17B Auto, Personal Loan & Mortgage portfolio, Wells Fargo)
  • Credit Analytics (MBNA/Bank of America, Wells Fargo, Citibank)