Success Story

Large Healthcare Provider Finds Prescription for Savings with MBG

Goal

This national healthcare provider, with more than 200 locations across the country, wanted to centralize the management of its telecommunications and IT services. The company’s goal, by centralizing management, was to be in a position to negotiate better local rates and reduce telecommunications costs by 20 - 30%. Additionally, the company wanted a solution that would provide long-term management of telecommunications expenses for the entire organization.

Challenges

The company sought to address several challenges. First, it needed a means to identify billing errors such as services that it had disconnected or added, billing that was not in line with contracts, taxes and fees that were are being incorrectly calculated, or for services that were provided to another organization but billed to the company in error.

Additionally, the company was looking to control maverick spending. It did not have a handle on undue local transport calls, directory assistance calls, international calls, or excessive carrier line charges due to lack of centralized management. For example, its local spend was managed with traditional operations staff who lacked national telecom knowledge and had no experience in sourcing telecom services. The voice services were being managed separately by each hospital used, preventing the company from conducting a company-wide audit to identify billing errors and negotiate better rates.

Solution

Based on MBG’s ability to process telecom data and convert it into valuable information for analysis, MBG delivered a Web-based invoice presentation solution that provided a central view of the data from each hospital location. The data also includes local voice services, allowing the company to have a centralized view of their LEC spend across the entire organization. 

Additionally, each month the company is able to match the combined, enterprise invoice against its inventory to identify any billing errors and then reconcile the disputed charges with the carrier.

Result

Within the first year of using these solutions  the company  reduced its telecommunications expenses by $1 million.  The company further reduced its telecommunication expenses by 21% after implementing additional MBG tools and implementing expense management procedures.  The company has also achieved its goal of cost avoidance.

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