Case Study: Plum Healthcare

Industry: Healthcare (Long-Term Care)

Company Size: 53 Facilities, 2,230 Employees, $450M in Revenue

Annual Telecom Spend: $1.5 Million

Client Overview

Plum Healthcare is a leading provider in the long-term care industry, operating 53 facilities with over 2,230 employees and generating $450 million in annual revenue. As a rapidly growing organization, Plum Healthcare faced challenges related to its telecom expenses, which amounted to $1.5 million annually. The company needed a strategic partner to optimize its telecom spend, streamline vendor management, and ensure cost efficiency without overburdening internal resources.

The Problem

Challenges Faced:

• Rapid Growth and Legacy Issues:
  After 14 years of rapid expansion, the company felt that product and service contract rates and terms were not adequately addressed by the former ownership. This legacy issue resulted in outdated contracts, unfavorable terms, and inefficient cost structures.
• Reluctance to Outsource:
  Initially hesitant to trust an outsourced solution due to previous experiences, Plum Healthcare was concerned about transparency and maintaining control over telecom spend.
• Complex Telecom Landscape:
  Multiple telecom services spread across 53 facilities, leading to complexity in management and billing. Numerous unused services and outdated contracts, contributing to unnecessary costs.
• Billing Errors and Overcharges:
  Recurring billing errors and overcharges due to outdated agreements and a lack of oversight. Without internal staff dedicated to auditing telecom expenses, these issues went unchecked.
• Lack of Benchmark Analytics:
  Absence of industry benchmark analytics to negotiate the best contractual rates, terms, and conditions. Inability to leverage data for strategic vendor negotiations.

Impact on Business:

• Excessive telecom costs eating into operational budgets.
• Unnecessary complexity in vendor management, leading to inefficiencies.
• Lack of visibility into spending patterns, hindering strategic cost control.

The Discovery

Analysis and Insights:

• Discovery Process:
  Limitless Vendor Management conducted a comprehensive telecom audit, including:
  • Reviewing all contracts, invoices, and billing statements.
  • Analyzing usage patterns across 53 facilities to identify unused or redundant services.
  • Benchmarking current rates against industry standards to identify cost-saving opportunities.

Key Findings:

• Outdated contracts with unfavorable rates and terms.
• Numerous unused lines and services, resulting in wasteful spending.
• Recurring billing errors leading to significant overcharges.

Notable Insights:

• Identified a lack of internal resources dedicated to vendor and contract management, contributing to inefficiencies.
• Discovered that previous reluctance to outsource was due to a lack of visibility and trust in vendor management solutions.

The Solution

Actions Taken:

• Cost Optimization and Contract Renegotiation:
  Secured better contractual rates, terms, and conditions through strategic negotiations with multiple telecom vendors. Identified and eliminated unused services, reducing wasteful spending.
• Billing Audit and Credits Recovery:
  Audited all telecom invoices to identify billing errors and overcharges. Recovered credits for overcharges, directly impacting the bottom line.
• Full-Service Implementation:
  Managed the entire pre-negotiation process for new contracts, ensuring favorable terms for Plum Healthcare. Oversaw the implementation of contract changes, minimizing disruption to operations.
• Benchmark Analytics and Strategic Insights:
  Utilized industry benchmark analytics to negotiate the best possible rates and contractual terms. Provided detailed reporting and visibility, rebuilding trust in the outsourcing process.

The Results

Impact and Outcomes:

• Significant Cost Savings:
  Achieved over $630,000 in savings on telecom expenses. This represents 42% savings on their annual telecom spend of $1.5 million. Secured better contractual rates and terms, ensuring long-term cost efficiency.
• Credits and Error Recovery:
  Obtained substantial credits for historical billing errors, directly enhancing cash flow.
• Operational Efficiency and Soft Cost Savings:
  Saved Plum Healthcare hundreds of hours in soft costs by handling all implementation work. Eliminated the need for additional internal resources to manage telecom audits and negotiations.
• Improved Vendor Management and Control:
  Streamlined vendor management with consolidated contracts and optimized services. Provided transparency and detailed analytics, enhancing decision-making capabilities.

Client Testimonial

“Limitless Vendor Management transformed our telecom expenses from a complex, costly issue into a streamlined, cost-effective operation. Their end-to-end service allowed us to focus on our core business while realizing substantial savings.”

— Senior Executive, Plum Healthcare

Conclusion and Key Takeaways

Success Summary:
By partnering with Limitless Vendor Management, Plum Healthcare successfully:

• Reduced telecom spend by over $630,000 annually, representing a 42% savings.
• Secured more favorable contractual rates, terms, and conditions.
• Streamlined vendor management across 53 facilities, enhancing operational efficiency.
• Recovered substantial credits from historical billing errors.
• Saved significant soft costs in man hours by outsourcing contract negotiation and implementation.

Key Takeaways:

• Strategic outsourcing with the right partner can rebuild trust and deliver substantial cost savings.
• Comprehensive audits combined with benchmark analytics reveal hidden cost-saving opportunities.
• Full-service implementation minimizes operational disruption while optimizing vendor management.

Discover how Limitless Vendor Management can optimize your operations and reduce costs. Contact us today for a consultation.

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