Overview

A prominent hospital and medical institution faced a critical financial challenge, with their Chief Financial Officer (CFO) tasked with reducing annual expenditure by 15%.

At the time, the institution was spending approximately $3 million per year across seven different service providers, leading to fragmented service delivery and inflated costs.

To achieve the necessary reduction, the institution sought a telecommunications strategy to consolidate their existing providers, renegotiate their contracts, eliminate any unused services, and identify any additional cost-saving opportunities.

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Problems and Requirements 

The institution’s main objectives included:

Significant Financial Pressure

Achieving a 15% reduction in expenditure to alleviate financial strain, necessitating a more strategic approach to spending.

Fragmented Service Providers

Managing seven providers led to numerous inefficiencies, unnecessary complexity, and excessive spending.

Need for Consolidation and Cost-Effective Contracting

The institution needed to streamline their service providers, renegotiate their current contracts to secure more competitive pricing, and cancel any unused services to optimise their budget.

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Solutions and Recommendations 

Telco Broker provided an in-depth audit on their current services and a targeted cost reduction strategy was implemented, resulting in substantial savings and enhanced operational efficiency.

Key components included:

Provider Consolidation

By reducing the number of suppliers, the institution was able to simplify their service delivery, lower their administrative costs, and improve vendor accountability.

Contract Renegotiation

All remaining contracts were reviewed and renegotiated to secure more competitive terms, ensuring that each service offered maximum value.

Elimination of Unused Services

Through a detailed audit, unused and redundant services were identified and cancelled, this further reduced their current costs by more than $500,000 annually.

The solution not only yielded immediate savings but also created a streamlined, sustainable structure for future financial management.

Outcomes 

Through a strategic and disciplined approach to cost management, the hospital successfully reduced its annual expenditure by 15%, achieving its financial objectives while continuing to maintain their service quality.

This streamlined, optimised structure now provides a solid foundation for sustainable financial health, ensuring the institution can continue delivering exceptional care while managing their resources effectively.

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Summary 

The hospital and medical institution recommend that similar healthcare organisations facing financial constraints consider a comprehensive telecommunications cost reduction strategy.

By consolidating their telco providers, renegotiating existing contracts, and eliminating all unused services, institutions in this industry can achieve significant savings while still maintaining high-quality care.

Regular audits and reviews of contracts and services are also advised to identify any ongoing opportunities for efficiency improvements.