Case Study – Healthcare

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Michael Hammelburger


The Challenge:

Different year, same financial constraints. Nearly every school faces the daunting task of achieving positive student outcomes while simultaneously managing budgetary shortfalls. A school district in Pennsylvania found themselves spending more time discussing the need to save money than the ability to implement a savings strategy. How can you achieve savings with limited resources, limited negotiations professionals, and no way to confirm where or how many savings you are going after?

The Choice:

Our gain share pricing model was a major factor in choosing to move forward. With the only costs for service being a portion of the savings recovered, the district is able to achieve savings without pulling resources from their traditional roles and day to day activities. They are adding a full data science and negotiations team focused on every savings opportunity driven by data. The optimization of fixed costs for school districts is vital, especially when attempting to plan around ever-changing budget allocations.

The Analysis:

The models, algorithms, and artificial intelligence deployed within the Data are intuitive enough to understand the entire vendor ecosystem from any organization’s general ledger. In this instance, the intelligence identified, mapped, and benchmarked every negotiable vendor rate above the norms and averages from like size education institutions. The analysis not only generate savings, but also benchmarked savings from vendors, the district was certain their rates were best in class. The annual savings projection was meaningful enough to move forward, saving time, resources, and money.

Annual Savings Target
$ 0
Total Negotiable Vendors

Largest Savings Categories:

Supplies, Utilities, Insurance

The Process:

Moving forward with we began with a one-hour onboarding call for us to begin planning the savings strategy. During this call, our optimization success team captures all client special relationships (vendors that we are not to negotiate due to personal relationships), sets up automation of invoices for review (for savings insight) and planned the first round of vendor negotiations. At month’s end, the optimization success team has a meeting with key stakeholders to review the new agreements that have been executed, savings that have already been realized, negotiations in progress, all upcoming negotiations, and more. This meeting repeats monthly and only takes around 30 minutes. This workflow has been built to maximize savings results with minimal time commitments from new clients.

The Outcome:

Achieving savings for our clients from their current vendors is what makes working with us easy. This is accomplished through the value of a full professional negotiations team with limitless ability to renegotiate any volume of agreements. In this client engagement, our negotiation target is 45 vendors during the first year. Instead of having us engage all vendors month one, we worked with the client to approach 10 per month. There is a plan in place to bring some new vendors onboard as school draws to a close that we will be benchmarking throughout the summer. As of today, our client is in month 2 of negotiations. See below for the results over the past 60 days.

Vendors Dropped Rates
Were Long Term Contracts
Are Pending Agreements
Vendors Dropped Rates
% 0
Monthly Savings Total
$ 0

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