A Look At How 3 Hospitals Added Hundreds of Thousands of Dollars Back Into Their Operating Budgets
PAG has worked with many hospitals to reclaim the hidden costs buried deep in their telecom and IT expenses. Here is a brief look at how three of these hospitals added hundreds of thousands of dollars back into their operating budgets.
GA Regional Medical Center & Unused Telecom
With an IT spend volume of $1,200,000 annually, spread across 23 locations, it was no easy feat tracking down every inflated or unused telecom cost. But after conducting an extensive audit, GA Regional Medical center was able to reduce costs by almost 27%, or $324,000 annually, without any vendor change. Additionally, more favorable terms were added to new
service agreements in order to ensure that future changes could be made without penalty, services not being utilized could be cancelled without penalty, bandwidth could be right-sized at any point, and that the hospital would only pay for services they actually used.
A Leading Mississippi Based Medical Center Telecom Audit
A leading Mississippi-based medical center had an annual IT spend volume of $880,000 annually. This audit was conducted across multiple locations as well as physicians groups. In the end, this hospital was able to reduce their annual spend by almost 21%, or $185,000 without any vendor change. In addition, the hospital secured a $21,000 credit for billing errors that had occurred in previous years. The customer was able to cancel services not being utilized and reduce their total number of invoices by 72%. The savings they made back from this project fully funded the replacement of their antiquated IT system with newer technology.
Regional Medical Center Saves on Telecom
This project consisted of a review of nearly $1,500,000 in annual voice and data expenses spread across several invoices. RMC’s audit allowed them to document and recover erroneous charges going back a full year. This included problems such as pricing errors at an account and line item level, charges payable by other firms, and services that weren’t disconnected properly. Over 25% of ongoing savings resulted simply from the elimination of voice and data services that weren’t in use.
Significant savings were also achieved by PAG’s negotiation of custom contracts with vendors and the efficient reallocation of services by vendor. PAG’s detailed, non intrusive approach enabled this hospital to minimize its involvement of time and resources and rely on PAG to fully implement all approved recommendations while maximizing savings and benefits.
[author_bio username=”Ken” name=”yes”]