- A Mississippi Based Regional Medical facility engaged Profit Advisory Group to audit their spend for voice, data, wireless, internet and equipment.
- Spend volume: $880,000 annually.
- Project included multiple locations as well as Physicians groups.
Key Challenges & Objectives:
- Challenges include Extensive Data collection.
- Hospital was using an antiquated local service that needed to be upgraded.
- Project objectives included achieving cost savings, better Contract terms, invoice consolidation and automating charges to correct Cost Centers.
Profit Advisory Group Solution:
- Extensive Data collection using Profit Advisory Group Data Collection process.
- Profit Advisory Group created a comprehensive inventory of all services currently in use by the Hospital and its facilities.
- Profit Advisory Group reviewed current invoices for contract compliance.
- Existing Vendors were contacted to review current contracts and services provided.
- Profit Advisory Group developed a comprehensive inventory to determine need and use of all service.
- Phase one evaluated current technology to determine the feasibility of an upgrade.
- Profit Advisory Group received quotes from existing providers to keep current business and insure Hospital was receiving best-in- class offer.
- Phase two dealt with consolidating invoices and standardizing invoice reporting tools to automate cost accounting.
- Profit Advisory Group utilized competitive bids and promotions to reduce costs with current providers.￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼￼
Client was able to reduce cost by almost 21% or $185,000 without any vendor change. In addition, the hospital secured a $21,000 credit for billing errors. Customer was able to cancel services not being utilized and reduce number of invoices by 72%. Finally, they were able to replace their antiquated system with newer technology with limited work by their staff and the savings fully covered the cost of the new solution.
[author_bio username=”Ken” name=”yes”]