CASE STUDIES
- Healthcare
CLIENT PROFILE
Type: Acute Care Hospital
Total Beds: 389
Ownership: Not-for-Profit; Community-Owned; Locally Governed
Services: 3-hospital system providing comprehensive healthcare and behavioral health services to more than 400,000 area residents within four states.
Other: VHA affiliate
FINANCIAL PROFILE
Total Equipment Maintenance Spend: $629,309 (on selected equipment)
Hard Dollar Cost Savings: $182,994 / 29.1% (verified by current maintenance contracts review)
Projected Invoices to be Processed by SU: 950 (vendor invoices sent to SU for review and payment)
Administrative Savings: $53,600 (approximately 1310 claims @ $40 in purchasing, 6 departments @ 0.5 @ $20 in Administration)
THE PROBLEM
Mediserve Insurance Services, a subsidiary of SU Group LLC demonstrated through a financial audit, that most pieces of equipment had their own service contracts with manufacturers. These service contracts charged a percent of the cost of capital to provide service coverage with varying exlusions and limitations. The client paid whether the equipment needed service or not.
THE SOLUTION
Mediserve Insurance Services, Inc. demonstrated through a due diligence phase that in some cases it was better to keep existing service agreements covering high-risk equipment and needed upgrades. The remaining ninety-five percent (95%) of service contracts were canceled.Over the course of several months, Mediserve met with key departments to share procedures and gain their support of the program.
The client had employees in eighty-five (85) different buildings, with most equipment located in about twenty (20) of those buildings. A list of contracts was selected for the implementation phase of the program (with varied vendors and expiration dates) and the list modified for equipment additions and deletions as we went along.
The Mediserve program was implemented and vendor support and response levels have either remained virtually the same, or have improved due to the competition for time and materials revenue in the marketplace.
The client has been greatly assisted through a consultative partnership with Mediserve. The Mediserve program is not a single answer to an inherent problem, but rather a series of solutions to multiple problems involving costs, inadequate coverages and inefficient and costly delivery systems found in virtually every healthcare facility.
Copyright 2002 SU Group LLC. All Rights Reserved. Website created and produced
by Chenequa Corporation.
