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Cost Optimization for a Group of Community Health Centers

By
Matt Cauller
|
Dec 31, 2024
|
Payroll and Wireless Telecom

A group of community health centers with five locations in the southeastern United States faced inconsistencies in medical supply costs, solid waste removal, and wireless telecom expenses, leading to unexpected costs and budget overruns. The group's CFO engaged Mobilia Consulting to analyze these categories and ensure they received competitive rates and optimized services despite being members of a Group Purchasing Organization (GPO).



Mobilia Consulting's primary objectives were to analyze the health centers' medical supply costs, solid waste removal, and wireless telecom spend, identify inefficiencies, negotiate better contracts where applicable, and provide ongoing customer support to streamline operations. The comprehensive approach began with an in-depth review of all relevant invoices and contracts, revealing significant inconsistencies and unnecessary charges that inflated the group's costs.



Medical Supply Costs



Through meticulous analysis, Mobilia Consulting identified areas for improvement in medical supply costs. Leveraging their expertise and industry knowledge, Mobilia negotiated a new contract with a large national vendor, resulting in a 20% reduction in costs without any change in service quality. The new contract ensured that health centers received everyday medical supplies while significantly lowering expenses without changing vendors.



Solid Waste Removal



Mobilia Consulting thoroughly reviewed the group's solid waste removal expenses, which involved four different vendors. Detailed analysis and strategic negotiations revealed opportunities for cost savings, resulting in a 17% reduction in solid waste removal costs. By aligning vendor contracts with the most cost-effective terms, Mobilia was able to streamline this expense category.



Wireless Telecom



Similarly, Mobilia Consulting reviewed the health centers' wireless telecom expenses. A detailed analysis revealed opportunities for cost savings through plan optimizations and removing unnecessary features and services. By aligning usage patterns with the most cost-effective plans, Mobilia could streamline the wireless spend, achieving a 43% reduction in costs without requiring direct negotiations with the vendor. Ongoing customer support was an essential value addition, ensuring the health centers no longer needed to spend time dealing with their wireless telecom carrier. This support saved the organization approximately 25 hours per month and ensured continuous monitoring and management of wireless expenses to maintain optimized savings.



Results



The results of Mobilia Consulting's intervention were substantial. The group of community health centers achieved a 20% reduction in medical supply costs, a 17% reduction in solid waste removal costs, and a 43% reduction in wireless telecom spend. Mobilia Consulting's efforts in negotiating better contracts and optimizing plans resulted in significant cost savings. Mobilia's ongoing support ensured these savings' sustainability and allowed the health centers to focus on their core operations without worrying about expense management.



Stakeholder Satisfaction



The CFO was pleased with the significant savings achieved. The IT team appreciated the reduced time required to manage wireless telecom spend, while the accounts payable (AP) team valued having a trusted partner to monitor invoices and ensure they were correct and optimized.



Conclusion



In conclusion, Mobilia Consulting enabled the group of community health centers to achieve significant cost savings and operational efficiencies. By leveraging detailed analysis to optimize medical supply costs, solid waste removal, and wireless telecom plans and providing ongoing customer support, the health centers are now better positioned to manage their expenses effectively. Through a meticulous review process and strategic negotiations, the health centers achieved immediate financial benefits and are also set up for sustainable financial health and efficiency in the future, instilling a sense of optimism.