Case Study: Milestone Retirement Communities

Industry: Senior Living and Memory Care

Company Size: Managed Between 28-82 Locations Over 7 Years, Approximately 1,300 Employees

Client Overview

Founded in 2008, Milestone Retirement Communities is dedicated to creating environments where residents, employees, and investors feel valued and respected. With a mission to reimagine the way we age through vibrant living and operational excellence, Milestone operates independent living, assisted living, and memory care communities across the United States.

Over the course of a 7-year partnership, Limitless Vendor Management worked with Milestone as they managed between 28 and 82 locations, reflecting significant growth and operational complexity. During this period, Limitless helped Milestone navigate the challenges of rapid expansion while maintaining cost efficiency and operational effectiveness.

The Problem

Challenges Faced:

• Rapid Expansion and Geographic Dispersion:
  Managing between 28 and 82 locations across multiple states resulted in a complex network of varying vendors and service agreements.
• Limited Internal Resources:
  The extensive effort required to audit every line item of bills was beyond the capacity of the existing staff.
• Multiple Third-Party Vendors Across Approximately 20 Categories:
  Managing approximately 20 categories of spend with multiple vendors, each having variable rates, terms, and conditions, led to administrative challenges.
• Lack of Competitive Benchmark Analytics:
  Without access to competitive benchmark data, negotiating favorable contracts was difficult.
• Reluctance to Outsource:
  Previous experiences made the company hesitant to trust external partners with sensitive financial and operational data. It took two years for Milestone to feel comfortable partnering with Limitless Vendor Management due to concerns about transparency and control over their financial operations.

Impact on Business:

• Financial Strain: Inefficient vendor agreements and billing errors led to unnecessary expenses.
• Operational Inefficiencies: The complexity of managing numerous vendors diverted focus from core business activities.
• Resource Limitations: The lack of internal personnel to conduct thorough audits resulted in missed opportunities for cost savings.

The Discovery

Analysis and Insights:

• Vendor Contract and Invoice Audit:
  Conducted a detailed examination of all vendor contracts, invoices, and billing statements across approximately 20 categories of spend. Analyzed historical spending patterns to identify cost anomalies and usage inefficiencies.
• Usage Analysis and Service Utilization Review:
  Evaluated service utilization to identify discrepancies between billed services and actual usage, ensuring no overpayments for underutilized services. Conducted site-by-site analysis to tailor cost optimization strategies for each location.
• Risk Item Management and Compliance Review:
  Identified and mitigated contractual risks, ensuring vendor agreements were compliant with industry standards and internal policies. Reviewed contract terms and conditions to assess and mitigate financial and operational risks.
• Benchmarking and Competitive Analysis:
  Utilized proprietary industry benchmarked analytics to compare existing vendor rates and terms against industry standards. Assessed vendor performance and pricing competitiveness to negotiate more favorable terms.

Key Findings:

• Contract Inefficiencies and Risks:
  Significant variations in contract terms, rates, and conditions across similar services, resulting in inconsistent cost structures. Identified risk items related to auto-renewal clauses, liability terms, and outdated compliance requirements.
• Billing Discrepancies and Overcharges:
  Numerous billing errors, including overcharges and duplicate invoices, leading to unnecessary expenses. Lack of consistent invoice verification processes, resulting in payment of inaccurate charges.
• Underutilized Services and Redundant Costs:
  Discovered multiple underutilized services and redundant contracts, contributing to wasteful spending. Identified opportunities for service consolidation and vendor rationalization.
• Lack of Strategic Vendor Management and Oversight:
  Inconsistent vendor management practices across locations, resulting in fragmented contract administration. Limited visibility into vendor performance and contract compliance.

The Solution

Actions Taken:

• Billing Optimization and Consulting:
  Conducted thorough billing audits to identify and eliminate errors and overcharges. Provided strategic consulting to optimize vendor contracts and spending categories, ensuring alignment with Milestone’s operational needs.
• VMS Platinum Platform Implementation:
  Implemented the VMS Platinum platform to centralize and streamline vendor management across all locations. Utilized advanced analytics and automation to continuously monitor usage, billing accuracy, and contract compliance.
• Vendor Consolidation, Negotiation, and Risk Item Management:
  Streamlined the number of vendors by consolidating services where feasible, reducing administrative complexity. Negotiated more favorable contract terms, leveraging industry benchmarked analytics for strategic advantage. Proactively identified and mitigated contractual risks, ensuring compliance and minimizing financial exposure.
• Billing Corrections and Credits Recovery:
  Addressed billing errors by working directly with vendors to obtain credits for overcharges, ensuring all historical discrepancies were corrected.
• Proprietary Industry Benchmarked Analytics and Strategic Insights:
  Leveraged proprietary industry benchmarked analytics to empower informed decision-making in contract negotiations. Provided detailed reporting and visibility, rebuilding trust and confidence in outsourcing vendor management.

The Results

Impact and Outcomes:

• Substantial Cost Savings:
  Achieved over $1.26 million in total cost reductions during the 7-year partnership, including:

   

  • $330,000 from Billing Optimization
  • $930,000 from VMS Platinum Services

  Resulting in an ROI of over 230%. All savings were fully realized during the partnership term, as Milestone is no longer utilizing Limitless’ services.

• Operational Efficiency:
  Freed internal resources from administrative burdens, allowing focus on core operations. Centralized vendor management processes, enhancing visibility and control.
• Risk Mitigation and Compliance Improvement:
  Proactively managed and mitigated contractual risks, ensuring compliance with industry standards and internal policies. Implemented contract lifecycle management practices, reducing legal and financial exposure.
• Credits and Error Recovery:
  Obtained substantial credits for historical billing errors, directly enhancing cash flow.
• Improved Vendor Relationships and Strategic Partnerships:
  Established clearer communication and more favorable terms with vendors. Leveraged benchmark analytics to negotiate industry-leading contract terms.

Client Testimonials

“Partnering with Limitless Technology for VMS has been a win for Milestone. Limitless has saved Milestone thousands of dollars during our partnership and even more savings in time management, personally assisting with navigating the red tape of contract negotiation. A partnership we value from a vendor we trust.”
— Caryl Ridgeway, CEO, Milestone Retirement Communities

“Patrick Dooley, former owner of Milestone Retirement, highly recommends Limitless Vendor Management for their exceptional services and cost-saving solutions.”

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