Case Study: Nexion Health Saves Over $651,000 with UC Alternative's Innovative Unemployment Cost Management

Nexion Health operates 50+ skilled nursing care facilities in multiple states, providing assisted living, rehabilitation, long-term care, and memory care services. With a lean HR staff striving to keep up with the demands of a growing organization that today employs over 5,000 people, the company initially decentralized unemployment claims management to the individual facilities.

“But we found that the facilities were responding to claims late and missing opportunities to tell our story accurately,” said Cheryl Gould, HR Manager. Often the claim response didn’t include the necessary documentation or any narrative beyond the employment dates and termination cause. In other cases, the termination cause wasn’t clearly defined. “We were losing unemployment claims we shouldn’t have, including obvious cases where there was employee misconduct,” Gould explained.

Nexion Health sought to solve the problem by shifting responsibility for unemployment claim responses to a highly organized HR team member at the main office. However, she lacked the bandwidth to keep pace with the claims volume. By continuing to submit claim responses that were incomplete or not timely, the organization continued to lose initial unemployment claims unnecessarily, paying a higher unemployment tax (UI) rate as a result and driving up costs.

To address these challenges and save money, Nexion Health partnered with UC Alternative, implementing a new approach to unemployment cost management. This innovative solution allowed them to manage unemployment claims more efficiently and reduce their UI tax rate, leading to significant savings.

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