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When you operate dozens of hospitals across disparate materials management information systems (MMIS), it can be nearly impossible to analyze spend at the corporate level. Furthermore, it can be difficult to understand what vendors are providing which services at the system level. This creates complications with far reaching consequences such as inconsistent agreements, multiple vendors providing the same services, individual facilities executing one-off contracts.
These factors prompted the Chief Operating Officer of one of the nation’s leading operators of general acute care hospitals, with headquarters in the southeast, to engage the services of the Valify Solutions Group Advisory Solutions team for help.
Advisory Solutions began with an analysis of all facilities’ spend data to consolidate a single source of truth at the corporate level. After benchmarking each category against similar organizations, we identified two strong savings opportunities. Both categories were selected due to their high spend and multiple vendors: print management and elevator maintenance.
By eliminating multiple vendors and signing a sole-source print management agreement, the health system saved $2.4 million off $18 million annual spend on print management.
In the elevator maintenance category, $1.2 million in savings was implemented off an initial $3.1 million in annual spend. Most importantly, the health system was able to smoothly transition to new contracts in 90 days instead of the expected 120+days.