Regional physician practice reduces cost of medical supplies by 18%

An eye, ear, nose and throat (EENT) practice with four regional offices and 16 MDs was experiencing a double- whammy: too few administrative employees because of staff reductions, and too many suppliers.

Having learned about the Expense Reduction Analysts (ERA) “no savings – no fee” business model, the practice asked ERA medical supplies experts for help. In addition to seeking “hard” savings in the form of cost reductions, ERA also looks for “soft” savings, typically in process improvements.

Here’s a comparison of what ERA Consultants discovered and the results of their recommendations:

Before. Orders for medical supplies were placed by phone, fax, email, on-line and in person when a rep was on-site, making it difficult to verify purchases or track inventory.

After. A new primary supplier’s capabilities provide greater controls for ordering and increasing back office efficiency.

Before. Limited leverage with suppliers.

After. ERA Consultants collected and analyzed data from 12 months of stock keeping units (SKU) and sample invoices. Their detailed analysis and industry knowledge allowed them to secure improved discounts for a variety of important medical supplies, including pharmaceuticals.

Before. The EENT practice placed orders with as many as nine suppliers.

After. ERA secured better prices and payment terms with one new primary supplier and reduced the number of specialty providers.

 

ERA’s review resulted in better prices and greatly improved controls and reporting capabilities.

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